By Mackenzie Tatananni
Vistra stock climbed Friday after the energy provider unveiled a $1.9 billion deal to broaden its natural gas portfolio.
The company said it had reached an agreement to acquire seven modern natural gas generation facilities from Connecticut-based Lotus Infrastructure Partners, totaling roughly 2,600 megawatts of capacity.
Shares climbed 3.1% to $156.70 on Friday morning. The S&P 500 was up 0.2%.
The acquisition includes five combined cycle gas turbine facilities and two combustion turbine facilities located across the East and West Coasts. Vistra said the purchase would "further geographically diversify" its natural gas fleet.
The company oversees a diverse portfolio including nuclear, coal, and solar assets. President and CEO Jim Burke cited previous acquisitions of Dynegy and Energy Harbor completed in 2018 and 2024, respectively.
"We believe natural gas fired generation will continue to play an ever-increasing role in the reliability, affordability, and flexibility of U.S. power grids for years to come," Burke said in a statement.
The latest addition to Vistra's fleet will allow the company to serve a ramping demand for power, Burke said.
Vistra plans to fund the acquisition with the assumption of an existing term loan from Lotus and cash on hand.
Management expects the acquisition to close in late 2025 or early 2026, subject to "certain regulatory approvals." Barclays and Moelis will serve as financial advisors.
The latest news came on the heels of Vistra's mixed first-quarter results. While revenue rose from the previous year, the company swung to a $268 million loss in the quarter, causing shares to tumble.
Through Thursday's close, the stock has gained 10% this year and 62% over the past 12 months. Shares of peer Constellation Energy were also gaining Friday, up 0.9%.
Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com
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May 16, 2025 10:05 ET (14:05 GMT)
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