Vistra Corp. (NYSE: VST) is acquiring Cogentrix Energy’s portfolio of ten modern natural‑gas generation facilities, totaling approximately 5,500 MW of capacity, for a net purchase price of about $4.0 billion. The deal is structured with $2.3 billion in cash, $0.9 billion in Vistra common stock (five million shares at a mutually agreed value of $185 per share), and the assumption of roughly $1.5 billion of Cogentrix debt, offset by an estimated $0.7 billion net present value of expected tax benefits. The assets are located across PJM, ISO New England, and ERCOT, adding combined‑cycle and combustion‑turbine plants to Vistra’s portfolio.
The acquisition expands Vistra’s footprint in key competitive power markets and brings the company’s total generation capacity to roughly 50,000 MW. By adding modern, efficient natural‑gas plants, Vistra strengthens its integrated retail‑generation model and positions itself to capture the growing demand from data centers and electrification initiatives that are driving U.S. power consumption.
Financially, the transaction is expected to be accretive to earnings per share, with mid‑single‑digit accretion in 2027 and high single‑digit accretion on average over 2027‑2029. The valuation multiples—about 7.25× 2027 expected Adjusted EBITDA and $730 per kW—are considered attractive relative to peers, supporting the positive market reaction.
Jim Burke, Vistra President and CEO, said the deal marks the second opportunistic expansion of the company’s generation footprint in the past year and underscores Vistra’s disciplined investment approach. He highlighted the company’s ability to integrate and operate new assets efficiently, reinforcing confidence in the execution of the transaction.
Investors responded favorably, citing the attractive valuation and expected earnings accretion. The deal was seen as a strategic move to secure stable earnings in a market driven by data‑center demand and electrification.
The acquisition is expected to close in mid‑to‑late 2026, subject to regulatory approvals. Vistra maintains its long‑term net leverage target of less than 3× and plans to continue dividend and share repurchase programs, positioning the company for sustainable growth.
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