Vistra to Acquire Natural Gas Assets, Building on Industry-Leading Generation Portfolio to Better Serve Customers
Vistra (NYSE: VST) has announced a definitive agreement to acquire seven natural gas generation facilities from Lotus Infrastructure Partners for $1.9 billion (approximately $743/kW). The portfolio includes 2,600 MW of capacity across PJM, New England, New York, and California markets. The acquisition comprises five combined cycle gas turbine facilities and two combustion turbine facilities.
The transaction is expected to close in late 2025 or early 2026, subject to regulatory approvals. Vistra plans to fund the acquisition through a combination of cash and assumption of an existing term loan (approximately 50% of consideration). The purchase price represents roughly 7x 2026 Adjusted EBITDA multiple. The company reiterates its commitment to maintaining net leverage below 3x and returning capital to shareholders through $300 million in annual dividends and at least $1 billion in yearly share repurchases.
Vistra (NYSE: VST) ha annunciato un accordo definitivo per acquisire sette impianti di generazione a gas naturale da Lotus Infrastructure Partners per 1,9 miliardi di dollari (circa 743 $/kW). Il portafoglio comprende una capacità totale di 2.600 MW distribuiti nei mercati di PJM, New England, New York e California. L'acquisizione include cinque impianti a ciclo combinato con turbine a gas e due impianti con turbine a combustione.
La transazione dovrebbe concludersi tra la fine del 2025 e l'inizio del 2026, subordinatamente alle approvazioni regolamentari. Vistra prevede di finanziare l'acquisizione tramite una combinazione di liquidità e l'assunzione di un prestito a termine esistente (circa il 50% del corrispettivo). Il prezzo di acquisto corrisponde a circa 7 volte l'EBITDA rettificato previsto per il 2026. L'azienda ribadisce il suo impegno a mantenere un leverage netto inferiore a 3x e a restituire capitale agli azionisti tramite dividendi annuali per 300 milioni di dollari e almeno 1 miliardo di dollari in riacquisti di azioni ogni anno.
Vistra (NYSE: VST) ha anunciado un acuerdo definitivo para adquirir siete plantas de generación de gas natural de Lotus Infrastructure Partners por 1.900 millones de dólares (aproximadamente 743 $/kW). La cartera incluye una capacidad total de 2.600 MW en los mercados de PJM, Nueva Inglaterra, Nueva York y California. La adquisición comprende cinco plantas de ciclo combinado con turbinas de gas y dos plantas con turbinas de combustión.
Se espera que la transacción se cierre a finales de 2025 o principios de 2026, sujeta a aprobaciones regulatorias. Vistra planea financiar la adquisición mediante una combinación de efectivo y la asunción de un préstamo a plazo existente (aproximadamente el 50% de la contraprestación). El precio de compra representa aproximadamente 7 veces el EBITDA ajustado proyectado para 2026. La empresa reitera su compromiso de mantener un apalancamiento neto por debajo de 3x y de devolver capital a los accionistas mediante dividendos anuales de 300 millones de dólares y al menos 1.000 millones de dólares en recompras de acciones anuales.
Vistra (NYSE: VST)는 Lotus Infrastructure Partners로부터 7개의 천연가스 발전 시설을 총 19억 달러(약 743달러/kW)에 인수하는 확정 계약을 발표했습니다. 이 포트폴리오는 PJM, 뉴잉글랜드, 뉴욕, 캘리포니아 시장에 걸쳐 총 2,600 MW 용량을 포함합니다. 인수 대상은 복합 사이클 가스터빈 시설 5개와 연소 터빈 시설 2개입니다.
거래는 규제 승인에 따라 2025년 말 또는 2026년 초에 완료될 예정입니다. Vistra는 현금과 기존 장기 대출 인수(대금의 약 50%)를 조합하여 인수를 자금 조달할 계획입니다. 매입 가격은 2026년 조정 EBITDA의 약 7배에 해당합니다. 회사는 순부채비율을 3배 미만으로 유지하고, 연간 3억 달러 배당금과 최소 10억 달러의 연간 자사주 매입을 통해 주주에게 자본을 환원하겠다는 약속을 재확인했습니다.
Vistra (NYSE : VST) a annoncé un accord définitif pour acquérir sept centrales de production de gaz naturel auprès de Lotus Infrastructure Partners pour 1,9 milliard de dollars (environ 743 $/kW). Le portefeuille comprend une capacité totale de 2 600 MW répartie sur les marchés de PJM, Nouvelle-Angleterre, New York et Californie. L'acquisition comprend cinq centrales à cycle combiné à turbine à gaz et deux centrales à turbine à combustion.
La transaction devrait être finalisée fin 2025 ou début 2026, sous réserve des approbations réglementaires. Vistra prévoit de financer l'acquisition par une combinaison de liquidités et la prise en charge d'un prêt à terme existant (environ 50 % de la contrepartie). Le prix d'achat représente environ 7 fois l'EBITDA ajusté prévu pour 2026. L'entreprise réaffirme son engagement à maintenir un levier net inférieur à 3x et à restituer du capital aux actionnaires via des dividendes annuels de 300 millions de dollars et au moins 1 milliard de dollars de rachats d'actions annuels.
Vistra (NYSE: VST) hat eine endgültige Vereinbarung zum Erwerb von sieben Erdgaskraftwerken von Lotus Infrastructure Partners für 1,9 Milliarden US-Dollar (ca. 743 $/kW) bekannt gegeben. Das Portfolio umfasst eine Kapazität von 2.600 MW in den Märkten PJM, Neuengland, New York und Kalifornien. Der Erwerb umfasst fünf GuD-Kraftwerke (Gas- und Dampfturbinen) und zwei Gasturbinenanlagen.
Der Abschluss der Transaktion wird für Ende 2025 oder Anfang 2026 erwartet, vorbehaltlich behördlicher Genehmigungen. Vistra plant die Finanzierung der Akquisition durch eine Kombination aus Bargeld und der Übernahme eines bestehenden Terminkredits (etwa 50 % des Kaufpreises). Der Kaufpreis entspricht ungefähr dem 7-fachen des bereinigten EBITDA für 2026. Das Unternehmen bekräftigt sein Engagement, die Nettoverschuldung unter dem 3-fachen EBITDA zu halten und Kapital an die Aktionäre durch jährliche Dividenden in Höhe von 300 Millionen US-Dollar sowie mindestens 1 Milliarde US-Dollar an jährlichen Aktienrückkäufen zurückzugeben.
- Immediate accretion to Ongoing Operations AFCFbG expected in year one post-closing
- Attractive purchase price of $743/kW of capacity
- Geographic diversification of natural gas fleet across key markets
- Purchase price implies reasonable 7x 2026 Adjusted EBITDA multiple
- Company maintains strong shareholder returns with $300M annual dividends and $1B+ share repurchases
- Significant debt assumption (approximately $950M) through existing term loan
- Transaction completion subject to regulatory approvals, creating closing uncertainty
- Increased exposure to natural gas market volatility
Insights
Vistra's $1.9B acquisition of 2,600MW natural gas assets strengthens its portfolio at attractive valuation with year-one accretion expected.
Vistra's acquisition of seven natural gas facilities from Lotus Infrastructure Partners represents a strategic expansion of its generation footprint across key competitive markets. At
The portfolio includes five combined cycle gas turbine (CCGT) facilities and two combustion turbine (CT) facilities, adding approximately 2,600 MW of capacity across diverse markets including PJM, New England, New York, and California. This geographic diversification is particularly valuable as it reduces regional regulatory and market risks while positioning Vistra to capitalize on growing power demand in multiple regions.
Financially, the deal structure appears well-considered. The
Management expects the acquisition to be accretive to Ongoing Operations Adjusted Free Cash Flow before Growth in year one post-closing, while maintaining their previously communicated capital allocation strategy, including a long-term net leverage target below 3x and commitment to shareholder returns via
The transaction underscores management's belief in natural gas generation's continued importance for grid reliability and flexibility – a reasonable position given the ongoing energy transition and increasing intermittent renewable generation requiring dispatchable backup capacity. Based on their successful track record with previous acquisitions like Dynegy and Energy Harbor, Vistra appears well-positioned to integrate these assets effectively.
Highlights
- Transaction includes approximately 2,600 megawatts of modern natural gas generation assets at an attractive price of approximately
$743 - Acquisition is expected to deliver Ongoing Operations AFCFbG1 accretion in year one following closing.
- Reiterating previously communicated capital allocation plan, including long-term net leverage target of less than 3x2, the expected return of capital to shareholders by way of the planned
$300 million $1 billion
"We are excited to announce another opportunistic expansion of our generation footprint in some of our key competitive markets," said Vistra President and CEO Jim Burke. "We believe natural gas fired generation will continue to play an ever-increasing role in the reliability, affordability, and flexibility of
Burke concluded, "Importantly, as our experienced team has demonstrated previously with the acquisitions of Dynegy and Energy Harbor, successfully integrating fleets of generation assets is a core competency of our company. We look forward to closing the transaction and welcoming new team members to the Vistra family."
"We are pleased to have reached an agreement to sell this gas plant portfolio to a proven operator like Vistra," said Himanshu Saxena, Chairman and CEO of Lotus Infrastructure Partners. "The Lotus team has acquired, developed, and operated this portfolio of high-quality assets for many years, which has helped us deliver this win-win transaction for our investors."
Portfolio Overview | |||
Asset | State | Size (MW) | Technology |
Fairless | 1,320 | CCGT | |
510 | CCGT | ||
Garrison | 309 | CCGT | |
158 | CT | ||
108 | CCGT | ||
Syracuse | 103 | CCGT | |
Greenleaf | 49 | CT | |
Total | 2,557 | ||
Vistra is acquiring these assets for
Conditions and Timing
The transaction is subject to certain regulatory approvals, including the Federal Energy Regulatory Commission and the Department of Justice under the Hart-Scott-Rodino Act, and is expected to close sometime in late 2025 or early 2026.
Advisors
Barclays and Moelis & Company LLC are serving as financial advisors, and Latham & Watkins LLP and Cleary Gottlieb Steen & Hamilton LLP are serving as legal advisors, to Vistra.
Lazard is serving as exclusive financial advisor, and King & Spalding LLP and Eversheds Sutherland are serving as legal advisors, to Lotus Infrastructure Partners.
About Vistra
Vistra (NYSE: VST) is a leading Fortune 500 integrated retail electricity and power generation company that provides essential resources to customers, businesses, and communities from
1 Ongoing Operations excludes the Asset Closure segment. Any reference to "Ongoing Operations Adjusted FCFbG" is a reference to Ongoing Operations Adjusted Free Cash Flow before Growth, which is a non-GAAP measure.
2 Based on Ongoing Operations Adjusted EBITDA and excludes Project Level Financings (i.e. Vistra Zero
Cautionary Note Regarding Forward-Looking Statements
The information presented herein includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on current expectations, estimates and projections about the industry and markets in which Vistra Corp. ("Vistra") operates and beliefs of and assumptions made by Vistra's management, involve risks and uncertainties, which are difficult to predict and are not guarantees of future performance, that could significantly affect the financial results of Vistra. All statements, other than statements of historical facts, that are presented herein, or in response to questions or otherwise, that address activities, events or developments that may occur in the future, including such matters as activities related to our financial or operational projections including financial condition and cash flows, projected synergy, value lever and net debt targets, capital allocation, capital expenditures, liquidity, projected Adjusted EBITDA to free cash flow conversion rate, dividend policy, business strategy, competitive strengths, goals, future acquisitions or dispositions, development or operation of power generation assets, market and industry developments and the growth of our businesses and operations, including potential large load center opportunities (often, but not always, through the use of words or phrases, or the negative variations of those words or other comparable words of a future or forward-looking nature, including, but not limited to: "intends," "plans," "will likely," "unlikely," "believe," "confident", "expect," "seek," "anticipate," "estimate," "continue," "will," "shall," "should," "could," "may," "might," "predict," "project," "forecast," "target," "potential," "goal," "objective," "guidance" and "outlook"), are forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements. Although Vistra believes that in making any such forward-looking statement, Vistra's expectations are based on reasonable assumptions, any such forward-looking statement involves uncertainties and risks that could cause results to differ materially from those projected in or implied by any such forward-looking statement, including, but not limited to: (i) adverse changes in general economic or market conditions (including changes in interest rates) or changes in political conditions or federal or state laws and regulations; (ii) the ability of Vistra to execute upon its contemplated strategic, capital allocation, performance, and cost-saving initiatives and to successfully integrate acquired businesses; (iii) actions by credit ratings agencies; (iv) the severity, magnitude and duration of extreme weather events, contingencies and uncertainties relating thereto, most of which are difficult to predict and many of which are beyond our control, and the resulting effects on our results of operations, financial condition and cash flows; and (v) those additional risks and factors discussed in reports filed with the Securities and Exchange Commission by Vistra from time to time, including the uncertainties and risks discussed in the sections entitled "Risk Factors" and "Forward-Looking Statements" in Vistra's annual report on Form 10-K for the year ended December 31, 2024 and subsequently filed quarterly reports on Form 10-Q.
Any forward-looking statement speaks only at the date on which it is made, and except as may be required by law, Vistra will not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible to predict all of them; nor can Vistra assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement.
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SOURCE Vistra Corp
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