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Dec 31, 2023
Vistra Q4 2023 Earnings Report
Vistra reported full-year results for 2023 and announced the expected closing of the Energy Harbor transaction.
Key Takeaways
Vistra Corp. reported a strong full-year performance for 2023, with GAAP Net Income of $1,492 million and Cash Flow from Operations of $5,453 million. The company also announced the approval of the Energy Harbor acquisition, expected to close on March 1, 2024, and authorized an additional $1.5 billion for share repurchases.
GAAP full-year 2023 Net Income was $1,492 million and Cash Flow from Operations was $5,453 million.
Net Income from Ongoing Operations was $1,498 million, and Ongoing Operations Adjusted EBITDA was $4,140 million.
The Federal Energy Regulatory Commission approved the Energy Harbor Corp. acquisition, expected to close on March 1, 2024.
Approximately 98% of the outstanding beneficial interests in the Tax Receivable Agreement were repurchased, increasing expected free cash flow and simplifying the capital structure.
Vistra
Vistra
Vistra Revenue by Segment
Revenue by Segment
Retail Revenue
CapyFin.comTexas Revenue
CapyFin.comEast Revenue
CapyFin.comWest Revenue
CapyFin.comAsset Closure Revenue
CapyFin.com Forward Guidance
Vistra reaffirmed its 2024 standalone guidance ranges for Ongoing Operations Adjusted EBITDA and Adjusted FCFbG. The company has hedged approximately 99% of its expected generation volumes for the balance of 2024 and approximately 87% for 2025.
Positive Outlook
- Standalone 2024 Ongoing Operations Adjusted EBITDA Guidance range is meaningfully higher than the range of midpoint opportunities the company had estimated in its earnings presentations in 2022 and the first half of 2023.
- As of Feb. 23, 2024, Vistra has hedged approximately 99% of its expected generation volumes for the balance of 2024.
- As of Feb. 23, 2024, Vistra has hedged approximately 87% for 2025.
- Vistra’s comprehensive hedging program, as well as forward price curves as of Feb. 23, 2024, support the company’s 2024 standalone guidance ranges.
- Vistra is anticipating the 2025 midpoint opportunity to be in the range of $3,800 million to $4,000 million for Ongoing Operations Adjusted EBITDA (exclusive of any future EBITDA contribution from Energy Harbor).
Challenges Ahead
- Guidance excludes any potential contributions from Energy Harbor’s performance.
- Adverse changes in general economic or market conditions (including changes in interest rates) or changes in political conditions or federal or state laws and regulations.
- The ability of Vistra to execute upon its contemplated strategic, capital allocation, performance, and cost-saving initiatives, including the acquisition of Energy Harbor, and to successfully integrate acquired businesses.
- Actions by credit ratings agencies.
- The severity, magnitude and duration of extreme weather events, contingencies and uncertainties relating thereto, most of which are difficult to predict and many of which are beyond our control, and the resulting effects on our results of operations, financial condition and cash flows.
Revenue & Expenses
Visualization of income flow from segment revenue to net income