Vistra Corp. to Acquire 2,600 MW Gas Generation Facilities

By Greg Peters • Wednesday, May 21 15:30 • Permanent Link

Vistra Corp. (NYSE: VST) has announced its definitive agreement to acquire seven modern natural gas generation facilities from Lotus Infrastructure Partners, totaling approximately 2,600 MW of capacity. The acquisition includes five combined cycle gas turbine facilities and two combustion turbine facilities located across PJM, New England, New York, and California.

The acquisition is valued at $1.9 billion, or approximately $743/kW, and is expected to deliver immediate benefits to Vistra shareholders, including ongoing operations adjusted free cash flow before growth (AFCFBG) per share accretion. Vistra expects to fund the transaction with the assumption of an existing term loan from Lotus and cash on hand.

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.

Vistra's capital allocation plan includes a long-term net leverage target of less than 3x, the expected return of capital to shareholders by way of the planned $300 million in annual dividends, and at least $1 billion of share repurchases each year.

The company's portfolio overview of the acquired assets includes the Fairless facility in Pennsylvania with 1,320 MW, the Manchester facility in Rhode Island with 510 MW, the Garrison facility in Delaware with 309 MW, the Hazleton facility in Pennsylvania with 158 MW, the Beaver Falls facility in New York with 108 MW, the Syracuse facility in New York with 103 MW, and the Greenleaf facility in California with 49 MW.

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.

Vistra, a leading Fortune 500 integrated retail electricity and power generation company, operates a reliable and efficient power generation fleet of natural gas, nuclear, coal, solar, and battery energy storage facilities while focusing on reliability, affordability, and sustainability.

The acquisition of these natural gas assets is in line with Vistra’s strategy to expand its generation footprint and better serve its customers, as stated by Vistra President and CEO Jim Burke. Today the company's shares have moved -2.92% to a price of $152.45. For more information, read the company's full 8-K submission here.

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