Vistra Soars After Hours As It Acquires Cogentrix Energy For $4B

• The payment for the deal includes $2.3 billion in cash, $0.9 billion of Vistra stock consideration and assumption of $1.5 billion in outstanding debt. 
• Vistra expects high single-digit accretion on average over 2027-2029.
• It also reiterated its previously announced capital allocation plan. 
   

Vistra Corp shares soared in after-market trading on Monday, after it announced that it will acquire Cogetrix Energy, which will add 5,500 megawatts of natural gas generation capacity to its portfolio. 

Vistra said it will acquire these assets at a net purchase price of approximately $4.0 billion, which include payment of about $2.3 billion in cash, $0.9 billion of Vistra stock consideration and assumption of $1.5 billion in outstanding debt. 

Vistra said it will acquire these assets at a net purchase price of approximately $4.0 billion, which include payment of about $2.3 billion in cash, $0.9 billion of Vistra stock consideration and assumption of $1.5 billion in outstanding debt. 

The company expects the acquisition to deliver mid-single digit Ongoing Operations adjusted free cash flow before growth per share accretion in 2027 and high single-digit accretion on average over 2027-2029.

"The Vistra team is excited to announce the acquisition of the Cogentrix portfolio, marking the second opportunistic expansion of our generation footprint over the past year to support our ability to serve growing customer demand in our key markets," said Vistra President and CEO Jim Burke.

"Our diversified fleet, anchored on natural gas and nuclear generation, will play a critical role in the reliability, affordability, and flexibility of U.S. power grids. The addition of this natural gas portfolio is a great way to start another year of growth for Vistra as we've completed, acquired, or developed projects in each of the competitive power regions where we operate,” he added. 

Vistra also reiterated its previously communicated capital allocation plan, including 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.

How Did Stocktwits User React?

Retail sentiment around VST trended in ‘bullish’ territory amid ‘normal’ message volume. 

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