Vistra Corp acquires natural gas assets for $1.9 billion

IRVING, Texas - Vistra Corp (NYSE: VST), a Fortune 500 integrated retail electricity and power generation company with a market capitalization of $51.48 billion, has announced the acquisition of seven natural gas generation facilities from Lotus Infrastructure Partners. The $1.9 billion deal involves approximately 2,600 megawatts (MW) of capacity and includes five combined cycle gas turbine (CCGT) facilities and two combustion turbine (CT) facilities across PJM, New England, New York, and California. According to InvestingPro data, Vistra has demonstrated strong financial health with a GREAT overall score, suggesting solid fundamentals supporting this expansion.

The acquisition, priced at roughly $743/kW, is expected to be accretive to Vistra’s Ongoing Operations Adjusted Free Cash Flow before Growth (AFCFbG) per share from the first year following the closing. With last twelve months revenue of $18.1 billion and EBITDA of $6.76 billion, Vistra aims to finance the transaction through a combination of cash on hand and the assumption of an existing term loan from Lotus, which is anticipated to cover about 50% of the consideration at closing. InvestingPro analysis reveals that management has been aggressively buying back shares, demonstrating confidence in the company’s financial strategy.

Vistra’s President and CEO Jim Burke expressed optimism about the expansion, citing the role of natural gas-fired generation in ensuring the reliability and flexibility of U.S. power grids. He also emphasized the company’s proficiency in integrating generation assets, referencing past successful acquisitions.

The transaction is subject to regulatory approvals, with an expected closure date in late 2025 or early 2026. Advising Vistra on the deal are Barclays and Moelis & Company LLC for financial matters, and Latham & Watkins LLP and Cleary Gottlieb Steen & Hamilton LLP for legal considerations. Lotus Infrastructure Partners has appointed Lazard as its exclusive financial advisor, with King & Spalding LLP and Eversheds Sutherland as legal advisors.

Vistra reaffirmed its capital allocation plan, including a long-term net leverage target of less than 3x, a planned $300 million in annual dividends, and at least $1 billion of share repurchases each year. The purchase price suggests a multiple of approximately 7x 2026 Adjusted EBITDA, excluding potential synergies. Trading at $152.06, Vistra has shown impressive momentum with a 61% return over the past year. For deeper insights into Vistra’s valuation and growth potential, including 10+ additional ProTips and comprehensive financial metrics, visit InvestingPro for the full research report.

The information on this acquisition is based on a press release statement from Vistra Corp.

In other recent news, Vistra Energy has reported its Q1 2025 financial results, revealing a notable shortfall in earnings and revenue compared to market expectations. The company posted an earnings per share (EPS) of $0.45, significantly missing the forecasted $1.19, while revenue came in at $3.93 billion, falling short of the anticipated $4.46 billion. Despite the earnings miss, Vistra Energy reaffirmed its 2025 adjusted EBITDA guidance of $5.5 billion to $6.1 billion. The company continues to focus on its solar and energy storage projects, planning to invest over $700 million in these areas in 2025.

Additionally, Vistra Energy’s Q1 performance included a 53% year-over-year increase in adjusted EBITDA, reaching $1.24 billion. The generation segment was a major contributor with $1.056 billion, and the retail segment added $184 million. Analyst discussions during the earnings call highlighted ongoing talks with data center customers and the potential impact of AI infrastructure investments. The company expressed confidence in growing demand from data centers and plans to monitor regulatory developments closely.

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