Valued at $27.96 billion, Vistra Corporation (VST) is one of the largest producers of retail energy in the U.S., with a capacity of about 41 gigawatts powered by its portfolio of nuclear, natural gas (NGV24), coal, and solar power generation, along with one of the largest utility-scale battery projects in the world.
As a utility company, Vistra sells retail electricity and natural gas to industrial, residential, and commercial consumers across the U.S., serving over 5 million customers in 20 states - including a third of all electricity consumers in its home state of Texas.
VST stock has soared this year, gaining 122% YTD and 157.8% over the past 52 weeks. Like most other utility stocks, VST pays a dividend, with the quarterly payout set at $0.22 per share. Given the stock's outperformance, Vistra yields only about 1.09% at current levels.
Vistra Raises Guidance
Vistra announced its second-quarter results in early August, with revenue of $3.85 billion falling short against analysts' estimate of $3.96 billion. Net income during the quarter totaled $467 million, down 1.9% YoY.
Adjusted EBITDA from operations increased from $1.0 billion to $1.4 billion, with the retail segment contributing the highest amount, at $789 million. At the end of the quarter, the company had a cash and cash equivalents balance of $1.62 billion, and total liquidity of $3.85 billion.
“Based on our performance year-to-date and the projections we see for the balance of the year, we're confident that we will achieve Ongoing Operations Adjusted EBITDA results toward the upper end of our guidance range for 2024,” said CEO Jim Burke. “Additionally, given our strong hedge profile and the recent PJM capacity auction results, we are increasing the range of our midpoint opportunity for 2025 Ongoing Operations Adjusted EBITDA by $200 million to $5,200 million to $5,700 million.”
Management also announced plans to spend about $2.25 billion on share repurchases through 2024 and 2025.
Vistra Reaches Agreement with Sunrun
Vistra has announced a new program in partnership with Sunrun (SUN) in a bid to enhance grid reliability in Texas. Through the TXU Energy & Sunrun Battery Rewards program, homeowners with Sunrun solar panels and batteries can now contribute stored energy back to the grid during peak demand times.
Participants will in turn receive financial incentives while maintaining control over their systems during outages or severe weather conditions. This initiative builds on TXU Energy’s solar buyback plans, which have already paid over $10 million in credits to customers.
Sunrun will manage the discharging of stored solar power to the grid, leveraging its experience with over 116,000 installed storage systems and multiple virtual power plants. This collaboration aims to support the growing energy demands in Texas by harnessing the collective power of home solar panels and batteries. Vistra continues to innovate in energy efficiency, offering customers new ways to manage their energy usage and contribute to a sustainable energy transition.
Previously, in May, Vistra completed its DeCordova Energy Storage Facility in Granbury, Texas, which provides 260 megawatts of dispatchable, emission-free power to the ERCOT grid which will help facilitate the partnership with Sunrun. The facility has the capacity to power around 130,000 homes, and is a key part of Vistra’s strategy of expanding its zero-carbon portfolio to 7,300 MW by 2026.
Analysts Rate VST Stock a Strong Buy
Analysts are very bullish on VST stock, with a consensus “Strong Buy” rating and a mean price target of $116.78, reflecting an upside potential of 36.5% from the current market price. Currently, 9 analysts are covering the energy storage stock, with 8 recommending a “Strong Buy” and just 1 suggesting a “Moderate Buy.”
