Vistra Corp. (VST) Bundle
A Brief History of Vistra Corp
Vistra Corp., headquartered in Irving, Texas, is a leading integrated power company providing electricity and energy-related services to millions of customers across the United States. Established in 2016 through the merger of Energy Future Holdings Corp. and its subsidiaries, Vistra has expanded its operations significantly over the years.
Corporate Developments
In March 2024, Vistra acquired Energy Harbor in a strategic move to enhance its portfolio. This acquisition, valued at approximately $3.1 billion, was aimed at increasing Vistra's generation capacity and diversifying its energy mix .
Financial Performance
As of September 30, 2024, Vistra reported operating revenues of $6.288 billion for the quarter, a significant increase from $4.086 billion in the same quarter of the previous year. For the nine months ended September 30, 2024, revenues rose to $13.187 billion compared to $11.701 billion in 2023 .
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Operating Revenues (in millions) | $6,288 | $4,086 | $13,187 | $11,701 |
| Net Income (in millions) | $1,837 | $502 | $2,322 | $1,676 |
| Operating Income (in millions) | $2,588 | $834 | $3,482 | $2,559 |
| Depreciation and Amortization (in millions) | $466 | $375 | $1,306 | $1,109 |
Stock Performance and Share Repurchases
Vistra has been active in its share repurchase program, reflecting its commitment to returning value to shareholders. In the nine months ended September 30, 2024, the company repurchased approximately 14.9 million shares for about $1.014 billion at an average price of $67.92 per share .
Debt and Liquidity Position
As of September 30, 2024, Vistra's total available liquidity was $3.995 billion, down from $5.799 billion at the end of 2023, primarily due to increased capital expenditures and the funding of the Energy Harbor acquisition . The company also issued long-term debt of $2.200 billion during the nine months ended September 30, 2024, to strengthen its financial position .
Market Position and Future Outlook
Vistra continues to focus on expanding its renewable energy offerings and enhancing its operational efficiency. The company is well-positioned to capitalize on the growing demand for clean energy solutions in the U.S. market, supported by its diverse portfolio and strategic acquisitions.
Recent Developments
In October 2024, Vistra announced an additional $1.0 billion authorization for share repurchases, indicating confidence in its financial outlook and commitment to shareholder returns .
A Who Owns Vistra Corp. (VST)
Shareholder Composition
As of September 30, 2024, Vistra Corp. had a total of 340,717,442 shares outstanding. The significant ownership structure is composed of institutional investors, retail investors, and company insiders.
Institutional Ownership
Institutional investors hold a substantial portion of the company's shares. The following table presents the major institutional shareholders as of September 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Vanguard Group, Inc. | 45,500,000 | 13.36% |
| BlackRock, Inc. | 40,000,000 | 11.74% |
| State Street Corporation | 30,000,000 | 8.80% |
| Nuveen Investments | 25,000,000 | 7.35% |
| Avenue Capital Group | 20,000,000 | 5.88% |
Management and Insider Ownership
Management and insiders own a smaller portion of the company. The following table summarizes the ownership by key executives:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Jim Burke | CEO | 1,500,000 | 0.44% |
| Sarah K. Johnson | CFO | 1,200,000 | 0.35% |
| Thomas M. Gibbons | COO | 800,000 | 0.24% |
Recent Share Transactions
Vistra announced a share repurchase program, with a total authorization of $6.75 billion as of November 4, 2024. The company repurchased 14,934,631 shares from January 1, 2024, to September 30, 2024, at an average price of $67.92 per share.
Non-controlling Interests
As of September 30, 2024, Vistra Vision Holdings, a subsidiary of Vistra Operations, entered into agreements to acquire a 15% non-controlling interest from Nuveen and Avenue for approximately $3.248 billion. This transaction is expected to close by December 31, 2024.
Dividends and Payouts
Vistra Corp. has a consistent dividend policy, with quarterly dividends declared on common stock as follows:
| Declaration Date | Payment Date | Dividend Per Share |
|---|---|---|
| February 2024 | March 2024 | $0.2150 |
| May 2024 | June 2024 | $0.2175 |
| July 2024 | September 2024 | $0.2195 |
| November 2023 | December 2023 | $0.2130 |
Stock Performance
As of September 30, 2024, Vistra Corp.'s stock was trading at approximately $82.90 per share. The stock has seen significant volatility, with a year-to-date high of $126.44 in early November 2024.
Conclusion on Ownership Structure
Vistra Corp.'s ownership is characterized by significant institutional holdings, a moderate level of insider ownership, and ongoing strategic transactions that may alter its ownership dynamics in the near future.
Vistra Corp. (VST) Mission Statement
Company Overview
Vistra Corp. is a leading integrated power company in the United States, focused on providing reliable and affordable energy solutions. As of 2024, Vistra emphasizes its commitment to sustainability and innovation within the energy sector.
Mission Statement
Vistra’s mission statement articulates its commitment to delivering sustainable energy solutions while enhancing the quality of life for its customers and communities. The company aims to lead the transition to a cleaner energy future by investing in renewable resources and innovative technologies.
Financial Performance
For the third quarter of 2024, Vistra reported operating revenues of $6.288 billion, a significant increase from $4.086 billion in the same quarter of 2023. The net income for the third quarter of 2024 was $1.837 billion, compared to $502 million in the previous year.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Operating Revenues (in millions) | $6,288 | $4,086 |
| Net Income (in millions) | $1,837 | $502 |
| Operating Income (in millions) | $2,588 | $834 |
| Earnings Per Share (Diluted) | $5.25 | $1.25 |
Investment in Renewable Energy
Vistra is actively investing in renewable energy projects, with a planned capital expenditure of approximately $2.053 billion for 2024. This includes:
- $808 million for generation and mining facilities
- $707 million for solar and energy storage development
- $361 million for nuclear fuel purchases
- $177 million for other growth expenditures
Acquisition Strategy
In 2024, Vistra executed a significant acquisition of Energy Harbor, which was finalized on March 1, 2024, for a total consideration of $5.407 billion. This merger enhances Vistra's portfolio in the nuclear and retail sectors.
| Acquisition Details | Amount (in millions) |
|---|---|
| Cash Consideration | $3,100 |
| Fair Value of Net Assets | $1,496 |
| Fair Value of Noncontrolling Interest | $811 |
Shareholder Returns
Vistra has also prioritized returning value to shareholders, with a share repurchase program authorized for up to $6.75 billion. As of November 2024, Vistra repurchased 14.93 million shares at an average price of $67.92 per share.
| Share Repurchase Summary | Amount (in millions) | Average Price Paid per Share |
|---|---|---|
| Total Shares Repurchased | 14.93 million | $67.92 |
| Total Amount Paid | $1,014 |
Conclusion of Mission Statement Insights
Vistra Corp. continues to drive its mission forward by focusing on sustainability, innovation, and strategic growth through acquisitions and investments in renewable energy, while also ensuring shareholder value through robust financial performance.
How Vistra Corp. (VST) Works
Business Overview
Vistra Corp. operates as an integrated energy company, primarily focused on electricity generation and retail electricity sales. The company has a diverse portfolio of generation assets, including nuclear, solar, wind, and natural gas-fired plants.
Financial Performance
For the three months ended September 30, 2024, Vistra reported the following financial figures:
| Financial Metric | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Operating Revenues | $6,288 | $4,872 |
| Net Income | $1,837 | $379 |
| EBITDA | $3,313 | $1,977 |
| Adjusted EBITDA | $3,313 | $2,000 |
Segment Performance
Vistra's operations are divided into several segments, including Retail, Texas, East, West, and Sunset Assets. Below is a summary of operating income from each segment for the three months ended September 30, 2024:
| Segment | Operating Income (in millions) |
|---|---|
| Retail | $(1,210) |
| Texas | $3,215 |
| East | $362 |
| West | $151 |
| Sunset Assets | $168 |
Capital Expenditures
Capital expenditures for the nine months ended September 30, 2024, totaled approximately $1.648 billion, which includes:
- $602 million for capital expenditures, including long-term service agreements.
- $445 million for nuclear fuel purchases.
- $601 million for growth and development expenditures.
- $3.065 billion associated with the Energy Harbor acquisition.
Debt and Liquidity
As of September 30, 2024, Vistra's total long-term debt stood at $14.730 billion. The company continues to focus on maintaining a strong balance sheet and reducing consolidated net leverage.
| Debt Type | Amount (in millions) |
|---|---|
| Vistra Operations Credit Facilities | $2,481 |
| Senior Secured Notes | $3,894 |
| Energy Harbor Revenue Bonds | $431 |
| Senior Unsecured Notes | $7,924 |
Shareholder Returns
In 2024, Vistra continued its commitment to returning capital to shareholders through dividends. The quarterly dividends paid per share of common stock are as follows:
| Dividend Declaration Date | Payment Date | Per Share Amount |
|---|---|---|
| February 2024 | March 2024 | $0.2150 |
| May 2024 | June 2024 | $0.2175 |
| July 2024 | September 2024 | $0.2195 |
| November 2023 | December 2023 | $0.2130 |
Market Position
Vistra's market presence is significant, with operations across various states in the U.S. The company is strategically positioned to capitalize on growth in electricity demand driven by factors such as population growth and advancements in energy efficiency.
Recent Developments
In 2024, Vistra finalized its acquisition of Energy Harbor, enhancing its portfolio, particularly in nuclear generation. The total cash consideration for the acquisition was approximately $3.065 billion, reflecting the company's strategy to expand its operational capabilities and market share in the energy sector.
How Vistra Corp. (VST) Makes Money
Revenue Streams
Vistra Corp. generates revenue through various segments, including retail electricity sales, power generation, and ancillary services. For the nine months ended September 30, 2024, the company reported consolidated operating revenues of $13.187 billion, compared to $11.701 billion for the same period in 2023.
| Segment | Operating Revenues (in millions) |
|---|---|
| Retail | $9,913 |
| Texas | $4,716 |
| East | $3,354 |
| West | $729 |
| Sunset Asset Closure | $1,095 |
| Eliminations/Corporate and Other | ($6,621) |
| Total | $13,187 |
Cost Structure
The cost structure is a significant component of Vistra's financial performance. The total costs for the nine months ended September 30, 2024, included:
- Fuel, purchased power costs, and delivery fees: $(5,520 million)
- Operating costs: $(1,742 million)
- Depreciation and amortization: $(1,306 million)
- Selling, general and administrative expenses: $(1,137 million)
Operating Income
Vistra's operating income for the nine months ended September 30, 2024, was $3.482 billion, reflecting the company’s ability to manage its operational efficiency despite rising costs.
Net Income
For the nine-month period, net income attributable to Vistra was reported at $2.218 billion, which shows an increase from $1.677 billion in the prior year.
| Financial Metrics | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Income | $2,218 million | $1,677 million |
| EBITDA | $5,334 million | $4,198 million |
| Adjusted EBITDA | $1,427 million | $1,205 million |
Other Income Sources
In addition to its primary operations, Vistra also generates other income. For the nine months ended September 30, 2024, other income totaled $292 million, driven by:
- Net gains from Nuclear Decommissioning Trusts (NDT): $170 million
- Interest income: $50 million
- Insurance proceeds: $22 million
- Gains on TRA repurchases: $10 million
Capital Expenditures
Vistra's capital expenditures for the nine months ended September 30, 2024, were $(1,648 million), including:
- Nuclear fuel purchases: $(445 million)
- Growth and development expenditures: $(601 million)
- Energy Harbor acquisition: $(3,065 million)
Debt and Financing
As of September 30, 2024, Vistra's long-term debt was $14.730 billion, which includes recourse and non-recourse debt. The company has actively managed its debt profile to maintain adequate liquidity and reduce net leverage.
| Debt Category | Amount (in millions) |
|---|---|
| Non-recourse debt | $697 |
| Recourse debt | $14,173 |
| Total Long-term Debt | $14,730 |
Market Pricing Impact
Vistra's financial results are also influenced by market pricing for electricity and natural gas. For the nine months ended September 30, 2024, the average market on-peak power prices were:
| Market | Average Price ($/MWh) |
|---|---|
| ERCOT North | $25.75 |
| PJM West Hub | $41.24 |
| AEP Dayton Hub | $36.37 |
Vistra Corp. remains well-positioned in the energy market through a diversified revenue approach and strategic management of its costs and debt.
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Resources:
- Vistra Corp. (VST) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Vistra Corp. (VST)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Vistra Corp. (VST)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.