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Vistra Energy shares slide nearly 4% despite revenue beat in first quarter

EditorRachael Rajan
Published 08/05/2024, 12:46
© Reuters.
VST
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IRVING, Texas - Vistra Energy (NYSE:VST) reported a revenue of $3.05 billion for the first quarter of 2024, surpassing the consensus estimate of $2.59 billion. Despite the revenue beat, shares of Vistra Energy fell by 3.9%.

The company's GAAP Net Income stood at $18 million, a significant decrease from the $698 million reported in the first quarter of the previous year. The decrease in net income is primarily attributed to unrealized mark-to-market gains recognized in 2023.

However, Vistra's Ongoing Operations Adjusted EBITDA showed a robust increase, reaching $813 million, up by $259 million compared to the same period last year. This growth was driven by the inclusion of one month of results from the acquisition of Energy Harbor and the expiration of contracts which led to higher-than-expected migration of customers to default service providers at rates below prevailing wholesale market prices.

Vistra has initiated a combined midpoint guidance for 2024 Ongoing Operations Adjusted EBITDA, excluding any potential contribution from the nuclear production tax credit, of $4,800 million. The company's comprehensive hedging program and recent forward price curves support its combined 2024 guidance ranges, as well as its combined potential Ongoing Operations Adjusted EBITDA midpoint opportunities for 2025 and 2026.

Curt Morgan, Vistra's CEO, expressed confidence in the company's integrated model and the team's ability to deliver strong performance despite the challenges of winter storms and mild weather.

"Our integrated model, which combines best-in-class retail and commercial operations with a high-quality portfolio of generation assets, enables us to provide our retail customers the electric service they need while delivering consistent financial results for our stakeholders," stated Morgan.

Vistra's focus on clean energy investments was highlighted by the recent acquisition of Energy Harbor, which added more than 4,000 MW of nuclear generation to its portfolio. The company also began construction on two of its three larger Illinois combined solar and energy storage projects, part of the Coal to Solar and Energy Storage Initiative.

As of March 31, 2024, Vistra's total available liquidity was approximately $3,000 million, including cash and cash equivalents of $1,070 million. The company expects to spend at least $2.25 billion on share repurchases throughout 2024 and 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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