Vistra(VST) - 2025 Q1 - Quarterly Report

Financial Performance - Operating revenues for Q1 2025 increased to $3,933 million, up 28.7$3,054 million in Q1 2024[19] - Net loss attributable to Vistra for Q1 2025 was $268 million, compared to a net income of$18 million in Q1 2024, representing a significant decline[19] - Cash provided by operating activities for Q1 2025 was $599 million, compared to$312 million in Q1 2024, marking an increase of 91.3%[28] - Capital expenditures for Q1 2025 were $768 million, up from$465 million in Q1 2024, reflecting a 64.9% increase[28] - Comprehensive loss attributable to Vistra for Q1 2025 was $268 million, compared to a comprehensive income of$18 million in Q1 2024[20] - The net income for the three months ended March 31, 2024, was a loss of $35 million, compared to a net income of$18 million for the same period in the previous year[32] - For the three months ended March 31, 2024, the company reported revenues of $3,777 million and a net income of$69 million[56] - The company reported a net loss attributable to common stock of $317 million for the three months ended March 31, 2025, compared to a net loss of$84 million for the same period in 2024, resulting in a basic and diluted loss per share of $0.93[216] Assets and Liabilities - Total current assets rose to$8,430 million as of March 31, 2025, compared to $8,119 million at the end of 2024, reflecting a 3.8$33,390 million as of March 31, 2025, up from $32,187 million at the end of 2024, indicating a 3.7$4,838 million as of March 31, 2025, down from $5,583 million at the end of 2024, a decline of 13.3$1,999 million as of March 31, 2025, down from $2,061 million as of December 31, 2024[67] - The allowance for credit losses on accounts receivable increased to$75 million as of March 31, 2025, from $79 million at the beginning of the period[70] - Total assets as of March 31, 2025, amounted to$8,508 million, an increase from $7,767 million as of December 31, 2024[160] - Total liabilities as of March 31, 2025, were$6,105 million, compared to $4,718 million as of December 31, 2024[160] Shareholder Actions - The company repurchased$285 million in treasury stock during the reporting period[32] - The Board declared a quarterly dividend of $0.225 per share of common stock, which will be paid in June 2025[207] - Preferred stock dividends for Series A, B, and C were declared at$40.00, $35.00, and$44.375 per share, respectively, for the upcoming payment periods[214] - The company has authorized a $6.750 billion share repurchase program, with 3,576,453 shares repurchased at an average price of$130.43 per share as of May 2, 2025[208] Acquisitions and Mergers - The acquisition of Energy Harbor was completed on March 1, 2024, with a total purchase price of $4,596 million, which includes$3,100 million in cash consideration[48] - The fair value of identifiable net assets acquired from Energy Harbor was $5,180 million, resulting in goodwill of$227 million[54] - Acquisition costs related to the Energy Harbor Merger totaled $24 million for the three months ended March 31, 2024[57] - The company plans to acquire a combined 15$3.2 billion in cash, with the transaction closing on December 31, 2024[58] Operational Challenges - The Moss Landing 300 MW energy storage facility incurred a write-off of approximately $400 million due to a fire incident, with an additional$70 million accrued for related obligations[44][45] - The Moss Landing complex's net book value was approximately $170 million as of March 31, 2025, with ongoing investigations into the fire incident[44] - The company accrued approximately$70 million in obligations related to the Moss Landing Incident, including $30 million for air and soil monitoring and$40 million for decommissioning costs[182] - The company faced ongoing litigation related to natural gas index pricing, with claims alleging price manipulation from 2000-2002[176] - The company is involved in ongoing litigation regarding the GNP FIP, which is currently stayed pending court resolution[187] Regulatory and Compliance - The EPA published a final GHG rule in May 2024 that sets limits for new natural gas-fired combustion turbines and existing coal, oil, and natural gas-fired steam generation units, with exemptions for units retiring by January 1, 2032[184] - In March 2025, the Fifth Circuit Court denied petitions challenging the EPA's disapproval of Texas' State Implementation Plan (SIP) regarding ozone emissions, but no immediate impact is expected on Texas sources[185] - The EPA's final Effluent Limitation Guidelines (ELGs) rule published in May 2024 extends compliance dates for flue gas desulfurization and bottom ash transport water to December 2025[190] - The company submitted applications to the EPA for compliance extensions under both conversion and retirement scenarios for its Coal Combustion Residuals (CCR) facilities, with the EPA determining the applications were complete as of January 2022[192] - The EPA's final rule published in May 2024 expands groundwater monitoring and closure requirements to legacy CCR surface impoundments, with compliance reports due within 33 months after publication[194] Debt and Financing - Long-term debt, including amounts due currently, was reported at $16,305 million as of March 31, 2025, slightly up from$16,298 million on December 31, 2024[94] - Total long-term debt as of March 31, 2025, is $16.305 billion, an increase from$16.298 billion as of December 31, 2024[95] - Long-term debt maturities include $879 million due in the remainder of 2025 and$3.427 billion due in 2027[96] - The Vistra Operations Credit Facilities have aggregate commitments of $5.909 billion, including a revolving credit facility of$3.440 billion and a term loan of $2.469 billion[99] - The weighted average interest rate on the Term Loan B-3 Facility is 6.07$(608) million related to commodity derivative liabilities that are not fully collateralized as of March 31, 2025[146] - Credit risk exposure to derivative contract counterparties was $4,431 million, with a net exposure of$689 million as of March 31, 2025[149] Environmental and Decommissioning - The asset retirement obligations (ARO) related to nuclear generation decommissioning totaled $1.812 billion for the Comanche Peak facility, with a fair value of$2.223 billion in the nuclear decommissioning trust (NDT)[170] - The total ARO liabilities at the end of March 31, 2025, were $4.073 billion, slightly down from$4.078 billion at the beginning of the period[167] - The company recorded an accretion expense of $37 million for nuclear plant decommissioning for the three months ended March 31, 2025[167] - The Illinois coal ash disposal legislation enacted in July 2019 requires owners to submit closure alternative analyses for coal ash remediation, with the final rule effective from April 2021[198] Segment Reporting - The company’s operations are aligned into five reportable business segments: Retail, Texas, East, West, and Asset Closure, reflecting a strategic update in segment reporting[217]