Vistra(VST) - 2024 Q4 - Annual Results

Financial Performance - Vistra reported a full-year 2024 Net Income of $2,812 million, an increase of$ 1,320 million from 2023, driven by unrealized mark-to-market gains and the addition of Energy Harbor[4]. - Ongoing Operations Adjusted EBITDA for 2024 was $5,656 million, up$ 1,516 million compared to 2023, primarily due to the acquisition of Energy Harbor and increased revenues from nuclear production tax credits[5]. - Operating revenues for 2024 increased to $17,224 million, a 16.5% rise from$ 14,779 million in 2023[20]. - Net income attributable to Vistra for 2024 was $2,659 million, compared to$ 1,493 million in 2023, reflecting a 77.5% increase[20]. - The company reported an adjusted EBITDA of $5,656 million for the year ended December 31, 2024, compared to$ 5,539 million in 2023, a 2.1% increase[28]. - Adjusted EBITDA for 2023 reached $4,101 million, compared to$ 933 million in 2022, reflecting a substantial growth[35]. Cash Flow and Liquidity - Cash provided by operating activities for 2024 was $4,563 million, down from$ 5,453 million in 2023, indicating a 16.3% decrease[22]. - The company had total available liquidity of approximately $4,121 million as of December 31, 2024, including cash and cash equivalents of$ 1,188 million[8]. - The ending balance of cash, cash equivalents, and restricted cash decreased to $1,222 million in 2024 from$ 3,539 million in 2023, a decline of 65.5%[24]. - The company anticipates adjusted free cash flow before growth for 2025 to be between $3,000 million and$ 3,600 million, demonstrating strong cash generation capabilities[41]. Capital Expenditures and Investments - Capital expenditures, including nuclear fuel purchases, totaled $2,078 million in 2024, up from$ 1,676 million in 2023, marking a 24% increase[24]. - The acquisition of Energy Harbor contributed $3,065 million to cash flows used in investing activities in 2024[22]. - Vistra closed the acquisition of the remaining 15% minority interest in Vistra Vision, increasing its nuclear ownership by approximately 970 MW and solar and energy storage ownership by about 200 MW[9]. Shareholder Returns - The company executed approximately$ 4.9 billion in share repurchases since November 2021, reducing shares outstanding by about 30%[9]. - Preferred stock dividends paid increased to $192 million in 2024 from$ 150 million in 2023, a 28% increase[20]. Guidance and Future Outlook - The company reaffirmed its 2025 Ongoing Operations Adjusted EBITDA guidance range of $5.5 billion to$ 6.1 billion and Adjusted Free Cash Flow before Growth guidance of $3.0 billion to$ 3.6 billion[4][7]. - The company anticipates a midpoint opportunity for 2026 Ongoing Operations Adjusted EBITDA to exceed $6,000 million[7][14]. - Vistra's comprehensive hedging program supports its reaffirmed 2025 guidance, with approximately 100% of expected generation volumes hedged for 2025[7]. Challenges and Other Factors - Interest expense and related charges rose to$ 900 million in 2024, up from $740 million in 2023, representing a 21.6% increase[20]. - The company experienced unrealized net losses from mark-to-market valuations of commodities amounting to$ 1,155 million in 2024[22]. - The impact of Winter Storm Uri resulted in an adjusted EBITDA loss of $48 million, highlighting the challenges faced during extreme weather events[36]. - Interest expense and related charges for 2023 totaled$ 740 million, which includes $36 million of unrealized mark-to-market net losses on interest rate swaps[35]. - The company reported a change in working capital of$ 1,048 million, indicating effective management of operational liquidity[38].