Exhibit 99.1

COVANTA REPORTS SOLID 2011 THIRD QUARTER RESULTS

MORRISTOWN, NJ, October 19, 2011 — Covanta Holding Corporation (NYSE:CVA) (“Covanta” or the “Company”), a leading global owner and operator of Energy-from-Waste (“EfW”) projects, reported financial results today for the three and nine months ended September 30, 2011.

Key Q3 2011 Financial Highlights:

•

Revenue increased 7% to $432 million

•

Adjusted EBITDA increased $2 million to $152 million

•

Free Cash Flow increased $11 million to $106 million

•

Adjusted EPS was flat at $0.24

•

Returned $91 million to shareholders during the quarter

Key Q3 2011 Operational Highlights:

•

Boiler availability over 90% for the twelve months ended September 30, 2011

•

Broke ground on Durham-York EfW project, first large scale EfW project in North America in over 15 years

•

H-Power expansion is ~70% complete and on track to start up in mid-2012

•

Chengdu EfW project began converting waste to energy

Commenting on the third quarter of 2011, Anthony Orlando, Covanta’s President and CEO stated, “We completed another solid quarter in-line with our expectations. I was particularly pleased with our team’s effort to successfully manage through Hurricane Irene, drive improved waste disposal revenue and break ground on our Durham-York construction project.”

“Looking forward to 2012, we plan to continue growing the business, with a couple of new EfW projects coming online and several organic growth initiatives,” Orlando concluded.

		Three months ended
		September 30,
Continuing Operations		2011				2010
		(Unaudited)
		($ in millions, except per share amounts)
Revenues		$	432			$	403
Net Income From Continuing Operations		$	49			$	10
Adjusted EBITDA		$	152			$	150
Free Cash Flow		$	106			$	95
Adjusted EPS		$	0.24			$	0.24

Third Quarter Results From Continuing Operations

For the three months ended September 30, 2011, operating revenues increased to $432 million, up $29 million or 7%, from $403 million in the prior year comparative period. Two thirds of this increase is attributable to higher construction revenue related to the Honolulu expansion project. The remainder of the increase was driven by strong recycled metals pricing, contract escalations and higher tip fee pricing and volume. These increases were partially offset by lower debt service pass through revenues, lower energy revenues from our biomass plants and lower energy pricing.

Operating expenses of $345 million declined 3% from $357 million in the prior year comparative period as higher construction costs in the current quarter partially offset $32 million of asset write-downs in the third quarter of last year.

Adjusted EBITDA of $152 million was up $2 million compared with last year’s third quarter of $150 million as increases in recycled metals revenues and waste revenues were offset by lower debt service revenue and lower contribution from our biomass facilities.

Free Cash Flow was $106 million in the third quarter, an increase of $11 million compared to $95 million in the prior year comparative period, primarily attributable to an improvement in working capital, which was partially offset by a year over year increase in maintenance capital expenditures.

Adjusted EPS for the quarter was $0.24, which was flat with last year’s third quarter, as the lower number of shares outstanding due to the Company’s common stock buyback program and improved operating income, were offset by higher interest expense and a higher effective tax rate.

Year-to-Date Results From Continuing Operations

For the nine months ended September 30, 2011, total operating revenues increased 5% to $1,220 million. Free Cash Flow was $215 million for the year-to-date period compared to $236 million for the same period last year. Adjusted EBITDA was $346 million compared to $341 million for the same period last year and Adjusted EPS was $0.26 compared to $0.24 Adjusted EPS in 2010.

Updated 2011 Guidance for Continuing Operations

The Company is narrowing its 2011 guidance for the following key metrics (in millions, except per share amounts):

2011 Updated

2011 Prior

2010

Metric

Guidance Range

Guidance Range

Actual

Adjusted EBITDA

$485 – $505

$480 – $520

$470

Free Cash Flow

$260 – $290

$250 – $300

$318

Adjusted EPS

$0.45 – $0.55

$0.40 – $0.55

$0.42

Sanjiv Khattri, Covanta’s Chief Financial Officer, in commenting on the narrower guidance, noted “We remain on track for a solid year-over-year increase in Adjusted EBITDA and Adjusted EPS and we continue to generate very strong Free Cash Flow.”

Shareholder Return Activities

During the quarter, Covanta repurchased $81 million in common stock, or 5.2 million shares (3.6% of the Company’s outstanding shares), at a weighted average cost of $15.58 per share. Aggregate repurchases since June 2010 total $300 million, or 18.7 million shares, representing 12.1% of our outstanding shares. The Company also paid a quarterly dividend on July 6, 2011 and declared another quarterly dividend which was paid on October 14, 2011, both for $0.075 per share. During the quarter, Covanta also increased its share repurchase authorization by $100 million, bringing the total authorized amount to $400 million. Covanta has now returned $565 million to shareholders since the inception of its shareholder return program in the third quarter of last year.

“We continue to benefit from our strong cash generation and predictable business model by proactively returning capital to shareholders. Our commitment to this initiative was echoed during the quarter as our Board increased our repurchase authorization,” Khattri concluded.

Sale of Asia IPP Assets

In October, the Company completed the sale of its interests in the Madurai facility in India, the third of the four Asia IPP assets designated as assets held for sale. With this sale, Covanta has realized total net proceeds of approximately $256 million, net of transaction costs, from its asset sales so far this year.

Conference Call Information

Covanta will host a conference call at 8:30 am (Eastern) on Thursday, October 20, 2011 to discuss its results for the three and nine months ended September 30, 2011. The conference call will begin with prepared remarks, which will be followed by a question and answer session. To participate, please dial 877-806-3982 approximately 10 minutes prior to the scheduled start of the call. If you are calling from outside of the United States, please dial 702-928-7062. Please utilize conference ID number 11520954 when prompted by the conference call operator. The conference call will also be webcast live from the Investor Information section of the Covanta Energy website. A presentation, which will be referenced during the call, can be found on the Investor Relations section of the Covanta website at www.covantaenergy.com.

A replay of the conference call will be available from 11:30 AM (Eastern) Thursday, October 20, 2011. To access the replay, please dial 855-859-2056 or 800-585-8367, or from outside of the United States 404-537-3406 and use the replay conference ID number 11520954. The webcast will also be archived on www.covantaenergy.com.

10-Q Filing Update

The Company’s Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2011 is expected to be filed during the week of October 24, 2011 and will include additional XBRL information required at this time.

About Covanta

Covanta Energy is an internationally recognized owner and operator of large-scale Energy-from-Waste and renewable energy projects and a recipient of the Energy Innovator Award from the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy. Covanta’s 44 Energy-from-Waste facilities provide communities with an environmentally sound solution to their solid waste disposal needs by using that municipal solid waste to generate clean, renewable energy. Annually, Covanta’s modern Energy-from-Waste facilities safely and securely convert approximately 20 million tons of waste into 9 million megawatt hours of clean renewable electricity and create more than 9 billion pounds of steam that are sold to a variety of industries. For more information, visit www.covantaenergy.com.

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking” statements as defined in Section 27A of the Securities Act of 1933 (the “Securities Act”), Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”), the Private Securities Litigation Reform Act of 1995 (the “PSLRA”) or in releases made by the Securities and Exchange Commission (“SEC”), all as may be amended from time to time. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of Covanta and its subsidiaries, or general industry or broader economic performance in global markets in which Covanta operates or competes, to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements that are not historical fact are forward-looking statements. Forward-looking statements can be identified by, among other things, the use of forward-looking language, such as the words “plan,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “may,” “will,” “would,” “could,” “should,” “seeks,” or “scheduled to,” or other similar words, or the negative of these terms or other variations of these terms or comparable language, or by discussion of strategy or intentions. These cautionary statements are being made pursuant to the Securities Act, the Exchange Act and the PSLRA with the intention of obtaining the benefits of the “safe harbor” provisions of such laws. Covanta cautions investors that any forward-looking statements made by Covanta are not guarantees or indicative of future performance. Important assumptions and other important factors that could cause actual results to differ materially from those forward-looking statements with respect to Covanta, include, but are not limited to, the risk that Covanta may not successfully close its announced or planned acquisitions or projects in development and those factors, risks and uncertainties that are described in periodic securities filings by Covanta with the SEC. Although Covanta believes that its plans, intentions and expectations reflected in or suggested by such forward-looking statements are

reasonable, actual results could differ materially from a projection or assumption in any forward-looking statements. Covanta’s future financial condition and results of operations, as well as any forward-looking statements, are subject to change and inherent risks and uncertainties. The forward-looking statements contained in this press release are made only as of the date hereof and Covanta does not have or undertake any obligation to update or revise any forward-looking statements whether as a result of new information, subsequent events or otherwise, unless otherwise required by law.

Investor Contacts
Alan Katz
1.862.345.5456

Clare Rauseo
1.862.345.5236

IR@covantaenergy.com

Media Contact
James Regan
1.862.345.5216

Exhibit 1

Covanta Holding Corporation
Condensed Consolidated Statements of Operations

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2011				2010(A)				2011				2010(A)
		(Unaudited)
		(In millions, except per share amounts)
Operating revenues
Waste and service revenues		$	273			$	257			$	800			$	766
Electricity and steam sales			109				115				301				316
Other operating revenues			50				31				119				82
Total operating revenues			432				403				1,220				1,164
Operating expenses
Plant operating expenses			221				218				740				715
Other operating expenses			44				28				102				77
General and administrative expenses			24				22				74				76
Depreciation and amortization expense			48				47				142				142
Net interest expense on project debt			8				10				24				30
Write-down of assets (B)			—				32				—				32
Total operating expenses			345				357				1,082				1,072
Operating income			87				46				138				92
Other income (expense)
Investment income			1				1				1				1
Interest expense			(16	)			(11	)			(50	)			(32	)
Non-cash convertible debt related expense			(9	)			(10	)			(20	)			(30	)
Other expenses, net			(11	)			—				(14	)			—
Total other expenses			(35	)			(20	)			(83	)			(61	)
Income from continuing operations before income tax expense and equity in net income from unconsolidated investments			52				26				55				31
Income tax expense			(2	)			(15	)			(3	)			(18	)
Equity in net income from unconsolidated investments			1				1				3				1
Income from continuing operations			51				12				55				14
Income from discontinued operations, net of income tax expense of $0, $1, $3 and $5, respectively (A) (C)			(7	)			11				144				32
Net Income			44				23				199				46
Noncontrolling interests:
Less: Net income from continuing operations attributable to noncontrolling interests in subsidiaries			(2	)			(2	)			(3	)			(4	)
Less: Net income from discontinued operations attributable to noncontrolling interests in subsidiaries (A)			—				(1	)			(3	)			(3	)
Total net income attributable to noncontrolling interests in subsidiaries			(2	)			(3	)			(6	)			(7	)
Net Income Attributable to Covanta Holding Corporation		$	42			$	20			$	193			$	39
Amounts Attributable to Covanta Holding Corporation stockholders’:
Continuing operations		$	49			$	10			$	52			$	10
Discontinued operations (A)			(7	)			10				141				29
Net Income Attributable to Covanta Holding Corporation		$	42			$	20			$	193			$	39
Earnings Per Share Attributable to Covanta Holding Corporation stockholders’:
Basic
Continuing operations		$	0.35			$	0.07			$	0.37			$	0.07
Discontinued operations (A)			(0.05	)			0.06				0.98				0.18
Covanta Holding Corporation		$	0.30			$	0.13			$	1.35			$	0.25
Weighted Average Shares			139				153				143				154
Diluted
Continuing operations		$	0.35			$	0.07			$	0.36			$	0.07
Discontinued operations (A)			(0.05	)			0.06				0.98				0.18
Covanta Holding Corporation		$	0.30			$	0.13			$	1.34			$	0.25
Weighted Average Shares			140				154				144				155
Cash Dividend Declared Per Share:		$	0.075			$	—			$	0.225			$	1.50
Supplemental Information — Non-GAAP
Adjusted EPS (D)		$	0.24			$	0.24			$	0.26			$	0.24

(A)		In 2010, we adopted a plan to sell our interests in our non-core legacy fossil fuel independent power production facilities located in the Philippines, India, and Bangladesh. During the fourth quarter of 2010, these assets were classified as Assets Held for Sale as a result of our ongoing effort to sell them. Consequently, all corresponding prior year periods presented in our condensed consolidated financial statements have been reclassified to reflect these assets as discontinued operations.
(B)		For additional information, see Exhibit 7 — Note C of this Press Release.
(C)		During the first quarter of 2011, we completed the sale of our majority equity interests in a 106 MW (gross) heavy fuel-oil fired electric power generation facilities in Tamil Nadu, India (“Samalpatti”) and we completed the sale of our interests in a 510 MW (gross) coal-fired electric power generation facility in the Philippines (“Quezon”). The Quezon assets sold consisted of our entire interest in Covanta Philippines Operating, Inc., which provided operation and maintenance services to the facility, as well as our 26% ownership interest in the project company, Quezon Power, Inc. We received a combined total of cash proceeds of approximately $225 million, net of transaction costs. During the three and nine months ended September 30, 2011, we recorded a net after-tax (loss) gain on assets held for sale of $(11) million and $121 million, respectively.
(D)		For additional information, see Exhibit 4 of this Press Release.

Exhibit 2

Covanta Holding Corporation
Condensed Consolidated Balance Sheets

		As of
		September 30,				December 31,
		2011				2010
		(Unaudited)
		(In millions, except per share amounts)
ASSETS
Current:
Cash and cash equivalents		$	195			$	126
Restricted funds held in trust			154				126
Receivables (less allowances of $4 and $3, respectively)			240				272
Unbilled service receivables			20				23
Deferred income taxes			36				27
Prepaid expenses and other current assets			123				110
Assets held for sale (A)			60				191
Total Current Assets			828				875
Property, plant and equipment, net			2,444				2,478
Investments in fixed maturities at market (cost: $27 and $29, respectively)			28				29
Restricted funds held in trust			107				107
Unbilled service receivables			26				32
Waste, service and energy contracts, net			442				472
Other intangible assets, net			80				79
Goodwill			232				230
Investments in investees and joint ventures			45				46
Other assets			292				328
Total Assets		$	4,524			$	4,676
LIABILITIES AND EQUITY
Current:
Current portion of long-term debt		$	31			$	7
Current portion of project debt			99				141
Accounts payable			25				23
Deferred revenue			82				72
Accrued expenses and other current liabilities			233				186
Liabilities held for sale (A)			19				34
Total Current Liabilities			489				463
Long-term debt			1,474				1,558
Project debt			635				662
Deferred income taxes			637				605
Waste and service contracts			79				89
Other liabilities			113				140
Total Liabilities			3,427				3,517
Equity:
Covanta Holding Corporation stockholders’ equity:
Preferred stock ($0.10 par value; authorized 10 shares; none issued and outstanding)			—				—
Common stock ($0.10 par value; authorized 250 shares; issued 158 and 157 shares; outstanding 138 and 150 shares)			16				16
Additional paid-in capital			830				893
Accumulated other comprehensive income			(5	)			5
Accumulated earnings			243				213
Treasury stock, at par			(2	)			(1	)
Total Covanta Holding Corporation stockholders’ equity			1,082				1,126
Noncontrolling interests in subsidiaries			15				33
Total Equity			1,097				1,159
Total Liabilities and Equity		$	4,524			$	4,676

(A)		See Exhibit 1 — Note A of this Press Release.

Exhibit 3

Covanta Holding Corporation
Condensed Consolidated Statements of Cash Flow

		Nine Months Ended
		September 30,
		2011				2010(A)
		(Unaudited, in millions)
OPERATING ACTIVITIES:
Net income		$	199			$	46
Less: Income from discontinued operations, net of tax expense (A)			144				32
Income from continuing operations			55				14
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities from continuing operations:
Depreciation and amortization expense			142				142
Write-down of assets			—				32
Loss on extinguishment of debt			1				—
Non-cash convertible debt related expense			20				30
Stock-based compensation expense			13				13
Deferred income taxes			23				21
Decrease in restricted funds held in trust			(35	)			(21	)
Other, net			(1	)			9
Reversal of uncertain tax positions related to pre-emergence tax matters			(24	)			—
Change in restricted funds-other related to contractual liability to pre-petition creditors			5				—
Change in working capital, net of effects of acquisitions			77				53
Net cash provided by operating activities from continuing operations			276				293
Net cash provided by operating activities from discontinued operations (A)			1				35
Net cash provided by operating activities			277				328
INVESTING ACTIVITIES:
Purchase of property, plant and equipment			(91	)			(83	)
Acquisition of noncontrolling interests in subsidiaries			—				(2	)
Acquisition of businesses, net of cash acquired			(10	)			(128	)
Acquisition of land use rights			(8	)			(19	)
Other, net			(6	)			(16	)
Net cash used in investing activities from continuing operations			(115	)			(248	)
Net cash provided by investing activities from discontinued operations (A)			227				—
Net cash provided by (used in) investing activities			112				(248	)
FINANCING ACTIVITIES:
Principal payments on long-term debt			(37	)			(5	)
Principal payments on project debt			(83	)			(102	)
Payments of borrowings on revolving credit facility			—				(56	)
Proceeds from borrowings on project debt			15				5
Proceeds from borrowings on revolving credit facility			—				56
Change in restricted funds held in trust			7				(41	)
Cash dividends paid to stockholders			(22	)			(233	)
Common stock repurchased			(203	)			(37	)
Financings of insurance premiums, net			—				(10	)
Other financing, net			(8	)			13
Net cash used in financing activities from continuing operations			(331	)			(410	)
Net cash provided by (used in) financing activities from discontinued operations (A)			8				(28	)
Net cash used in financing activities			(323	)			(438	)
Effect of exchange rate changes on cash and cash equivalents			(4	)			—
Net increase (decrease) in cash and cash equivalents			62				(358	)
Cash and cash equivalents at beginning of period			141				434
Cash and cash equivalents at end of period			203				76
Less: Cash and cash equivalents of discontinued operations at end of period (A)			8				22
Cash and cash equivalents of continuing operations at end of period		$	195			$	54

(A)		See Exhibit 1 — Note A of this Press Release.

Exhibit 4

Covanta Holding Corporation
Reconciliation of Diluted Income Per Share to Adjusted EPS

		Three Months Ended								Nine Months Ended
		September 30,								September 30,								Full Year
		2011				2010(A)				2011				2010(A)				Estimated 2011
		(Unaudited)
Continuing Operations — Diluted Earnings Per Share		$	0.35			$	0.07			$	0.36			$	0.07				$0.52 — $0.62
Reconciling Items (B)			(0.11	)			0.17				(0.10	)			0.17				(0.07	)
Adjusted EPS		$	0.24			$	0.24			$	0.26			$	0.24				$0.45 – $0.55

(A)		See Exhibit 1 — Note A of this Press Release.
(B)		For details related to the Reconciling Items, see Exhibit 4A of this Press Release.

Exhibit 4A

Covanta Holding Corporation
Reconciling Items

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2011				2010				2011				2010
		(Unaudited)
		(In millions, except per share amounts)
Reconciling Items
Loss on extinguishment of debt		$	1			$	—			$	1			$	—
Effect on income of derivative instruments not designated as hedging instruments			1				—				—				(1	)
Effect of foreign exchange loss on indebtedness			(5	)			—				(2	)			—
Non-cash write-down of loan issued for the Harrisburg EfW facility to fund certain facility improvements (A)			—				7				—				7
Non-cash write-down of capitalized costs related to the Dublin development project (A)			—				23				—				23
Non-cash write-down of corporate real estate (A)			—				2				—				2
Contractual liability to pre-petition creditors (B)			15				—				15				—
Other			(1	)			—				(1	)			—
Total Reconciling Items, pre-tax			11				32				13				31
Proforma income tax impact (C)			(3	)			(7	)			(4	)			(7	)
Grantor trust activity			1				1				1				2
Reversal of uncertain tax positions related to pre-emergence tax matters (B)			(24	)			—				(24	)			—
Total Reconciling Items, net of tax		$	(15	)		$	26			$	(14	)		$	26
Diluted Earnings Per Share Impact		$	(0.11	)		$	0.17			$	(0.10	)		$	0.17
Weighted Average Diluted Shares Outstanding			140				154				144				155

(A)		For additional information, see Exhibit 7 — Note C of this Press Release.
(B)		For the three months ended September 30, 2011, the income tax provision includes a $24 million benefit due to the reversal of uncertain tax positions, following the expiration of applicable statutes of limitations related to pre-emergence tax matters in the Covanta Energy bankruptcy. We had held since March 2004 $20 million in restricted funds intended to cover those uncertain tax positions. The restricted funds were included in other assets on our condensed consolidated balance sheet. The expiration of the statutes of limitations triggered a liability to pre-petition claimants of approximately 73% of the restricted fund balance. Therefore, we recorded approximately $15 million as other expense during the three months ended September 30, 2011. As of September 30, 2011, $15 million of the non-current restricted funds was reclassified to other current assets on our condensed consolidated balance sheet and is expected to be paid to third party claimants in the fourth quarter of 2011. The remaining $5 million was reclassified to cash and cash equivalents on our condensed consolidated balance sheet as of September 30, 2011.
(C)		There is no tax benefit from the contractual liability to pre-petition creditors and minimal tax benefit from the non-cash write-down related to the Dublin assets. As a result, these items had an impact on the effective tax rate in the third quarter of 2011 and 2010, respectively. Accordingly, we are presenting this proforma calculation of the income tax effect on all reconciling items for each period to illustrate the proforma impact on income tax expense and net income. The proforma income tax impact represents the tax provision amount related to the overall tax provision calculated without the reconciling items when compared to the tax provision reported under GAAP in the condensed consolidated statement of income.

Exhibit 4B

Covanta Holding Corporation
Effective Tax Rate

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2011				2010				2011				2010
		(Unaudited)
Effective Tax Rate (A)			5.0	%			51.0	%			6.0	%			46.3	%

(A)		Our full year estimated effective tax rate (“ETR”) decreased during the third quarter of 2011 compared to our prior estimate as a result of the reversal of uncertain tax positions related to pre-emergence tax matters resulting from the expiration of the related statute of limitations. This reversal triggered a contractual liability to pay pre-petition claimants from Covanta Energy’s bankruptcy. This pre-tax expense is not deductible for income tax purposes and so this expense increases the ETR. GAAP requires the tax benefit from the reversal of the tax reserve to be recognized in full during the quarter while the ETR including the related non-deductible pre-tax expense is calculated on a full year basis. The result is a decrease of the ETR in the third quarter of 2011 followed by a large increase to the ETR for the fourth quarter of 2011. The ETR for the third quarter of 2011 was 5% and we expect the ETR for the fourth quarter of 2011 to be approximately 48%, absent discrete items.

Exhibit 5

Covanta Holding Corporation
Reconciliation of Net Income to Adjusted EBITDA

		Three Months Ended								Nine Months Ended
		September 30,								September 30,								Full Year
		2011				2010(A)				2011				2010(A)				Estimated 2011
		(Unaudited, in millions)
Net Income from Continuing Operations Attributable to Covanta Holding Corporation		$	49			$	10			$	52			$	10				$74 – $88
Depreciation and amortization expense			48				47				142				142				196 – 192
Debt service:
Net interest expense on project debt			8				10				24				30
Interest expense			16				11				50				32
Non-cash convertible debt related expense			9				10				20				30
Investment income			(1	)			(1	)			(1	)			(1	)
Subtotal debt service			32				30				93				91				128 – 124
Income tax expense (adjusted for reversal of uncertain tax positions related to pre-emergence tax matters) (B)			26				15				27				18				46-62
Reversal of uncertain tax positions related to pre-emergence tax matters (B)			(24	)			—				(24	)			—				(24	)
Contractual liability to pre-petition creditors (B)			15				—				15				—				15
Write-down of assets (C)			—				32				—				32
Loss on extinguishment of debt			1				—				1				—				1
Net income attributable to noncontrolling interests in subsidiaries			2				2				3				4				4 – 6
Other adjustments:
Debt service billings in excess of revenue recognized (D)			3				8				21				24
Non-cash compensation expense			4				3				13				13
Other non-cash items (E)			(4	)			3				3				7
Subtotal other adjustments			3				14				37				44				45 – 41
Total adjustments			103				140				294				331
Adjusted EBITDA — Continuing Operations		$	152			$	150			$	346			$	341				$485 – $505

(A)		See Exhibit 1 — Note A of this Press Release.
(B)		See Exhibit 4A — Note B of this Press Release.
(C)		See Exhibit 7 — Note C of this Press Release.
(D)		Formally labeled “Decrease in Unbilled Service Receivables”. This amount represents a true-up between (a) revenue recognized in the period for client payments of project debt principal under service fee contract structures, which is accounted for on a straight-line basis over the term of the project debt, and (b) actual billings to clients for debt principal payments in the period. As a result of this adjustment, Adjusted EBITDA reflects the actual amounts billed to clients for debt service principal, not the straight-lined revenue as recognized.
(E)		Includes certain non-cash items that are added back under the definition of Adjusted EBITDA in Covanta Energy Corporation’s credit agreement.

Exhibit 6

Covanta Holding Corporation
Reconciliation of Cash Flow Provided by Operating Activities to Free Cash Flow

		Three Months Ended								Nine Months Ended
		September 30,								September 30,								Full Year
		2011				2010(A)				2011				2010(A)				Estimated 2011
		(Unaudited, in millions)
Cash flow provided by operating activities from continuing operations		$	120			$	103			$	276			$	293				$335 – $375
Less: Maintenance capital expenditures (B)			(14	)			(8	)			(61	)			(57	)			(75) – (85	)
Continuing Operations Free Cash Flow		$	106			$	95			$	215			$	236				$260 – $290
Weighted Average Diluted Shares Outstanding			140				154				144				155
Uses of Continuing Operations Free Cash Flow
Investments:
Acquisition of businesses, net of cash acquired		$	—			$	—			$	(10	)		$	(128	)
Non-maintenance capital expenditures			(9	)			(10	)			(30	)			(26	)
Acquisition of land use rights			—				(4	)			(8	)			(19	)
Acquisition of noncontrolling interests in subsidiaries			—				—				—				(2	)
Other investing activities, net (C)			(3	)			—				(6	)			(16	)
Total investments		$	(12	)		$	(14	)		$	(54	)		$	(191	)
Return of capital to stockholders:
Cash dividends paid to stockholders		$	(11	)		$	(233	)		$	(22	)		$	(233	)
Common stock repurchased			(80	)			(37	)			(203	)			(37	)
Total return of capital to stockholders		$	(91	)		$	(270	)		$	(225	)		$	(270	)
Capital raising activities:
Net proceeds from issuance of project debt		$	7			$	2			$	15			$	5
Other financing activities, net			(1	)			4				(3	)			17
Net proceeds from capital raising activities		$	6			$	6			$	12			$	22
Debt repayments:
Net cash used for scheduled principal payments on project debt (D)		$	(23	)		$	(32	)		$	(76	)		$	(143	)
Net cash used for scheduled principal payments on long-term debt			(2	)			(2	)			(5	)			(5	)
Optional repayment of corporate debt			(26	)			—				(32	)			—
Total debt repayments		$	(51	)		$	(34	)		$	(113	)		$	(148	)
Short-term borrowing activities — Financing of insurance premiums, net		$	—			$	(3	)		$	—			$	(10	)
Distributions to partners of noncontrolling interests in subsidiaries		$	(2	)		$	(1	)		$	(5	)		$	(4	)
Effect of exchange rate changes on cash and cash equivalents		$	(3	)		$	3			$	(2	)		$	—
Net change in cash and cash equivalents from continuing operations		$	(47	)		$	(218	)		$	(172	)		$	(365	)

(A)		See Exhibit 1 — Note A of this Press Release.
(B)		Purchases of property, plant and equipment is also referred to as capital expenditures. Capital expenditures that primarily maintain existing facilities are classified as maintenance capital expenditures. The following table provides the components of total purchases of property, plant and equipment:

Maintenance capital expenditures		$	(14	)		$	(8	)		$	(61	)		$	(57	)
Capital expenditures associated with project construction / development			(7	)			(4	)			(18	)			(14	)
Capital expenditures associated with new technology			(1	)			(1	)			(3	)			(4	)
Capital expenditures — other			(1	)			(5	)			(9	)			(8	)
Total purchases of property, plant and equipment		$	(23	)		$	(18	)		$	(91	)		$	(83	)

(C)		Other investing activities is primarily comprised of net payments from the purchase/sale of investment securities and business development expenses.
(D)		Calculated as follows:

Total principal payments on project debt		$	(6	)		$	(7	)		$	(83	)		$	(102	)
(Increase) decrease in related restricted funds held in trust			(17	)			(25	)			7				(41	)
Net cash used for principal payments on project debt		$	(23	)		$	(32	)		$	(76	)		$	(143	)

Exhibit 7

Covanta Holding Corporation
Calculation of Key Metrics For The Three Months Ended March 31, 2010, June 30, 2010, September 30, 2010 and December 31, 2010 and for the year ended December 31, 2010 ^(A)

		Three Months Ended																Year Ended
Free Cash Flow		March 31, 2010				June 30, 2010				September 30, 2010				December 31, 2010				December 31, 2010
		(Unaudited, in millions)
Cash flow provided by operating activities from continuing operations		$	116			$	74			$	103			$	99			$	392
Less: Maintenance capital expenditures			(33	)			(16	)			(8	)			(17	)			(74	)
Free Cash Flow — Continuing Operations		$	83			$	58			$	95			$	82			$	318
Maintenance capital expenditures		$	(33	)		$	(16	)		$	(8	)		$	(17	)		$	(74	)
Capital expenditures associated with project construction / development			(3	)			(7	)			(4	)			(7	)			(21	)
Capital expenditures associated with new technology			(2	)			(1	)			(1	)			(2	)			(6	)
Capital expenditures — other			—				(3	)			(5	)			(6	)			(14	)
Total purchases of property, plant and equipment		$	(38	)		$	(27	)		$	(18	)		$	(32	)		$	(115	)

		Three Months Ended																Year Ended
Adjusted EBITDA		March 31, 2010				June 30, 2010				September 30, 2010				December 31, 2010				December 31, 2010
		(Unaudited, in millions)
Net (Loss) Income from Continuing Operations Attributable to Covanta Holding Corporation		$	(16	)		$	16			$	10			$	20			$	30
Depreciation and amortization expense			48				47				47				48				190
Debt service			29				32				30				30				121
Income tax (benefit) expense			(10	)			13				15				6				24
Net income attributable to noncontrolling interests in subsidiaries			1				1				2				1				5
Write-down of assets			—				—				32				2				34
Loss on extinguishment of debt			—				—				—				15				15
Debt service billings in excess of revenue recognized			11				5				8				5				29
Other			6				8				6				2				22
Adjusted EBITDA — Continuing Operations		$	69			$	122			$	150			$	129			$	470

		Three Months Ended																Year Ended
Adjusted EPS		March 31, 2010				June 30, 2010				September 30, 2010				December 31, 2010				December 31, 2010
		(Unaudited)
Continuing Operations — Diluted (Loss) Earnings Per Share		$	(0.10	)		$	0.10			$	0.07			$	0.13			$	0.19
Reconciling Items			(0.01	)			0.01				0.17				0.06				0.23
Adjusted EPS		$	(0.11	)		$	0.11			$	0.24			$	0.19			$	0.42