Vistra(US:VST)2025-02-27 23:59Financial Performance - Operating revenues for the year ended December 31, 2024, increased to $17.224 billion, up from $14.779 billion in 2023, representing a growth of 9.9%[421]. - Net income attributable to Vistra for 2024 was $2.659 billion, compared to $1.493 billion in 2023, reflecting a year-over-year increase of 77.5%[421]. - The company reported a comprehensive income of $2.826 billion for 2024, compared to $1.491 billion in 2023, indicating a significant improvement[423]. - Total assets increased to $37.770 billion in 2024, up from $32.966 billion in 2023, marking a growth of 14.0%[425]. - The company's total liabilities rose to $32.187 billion in 2024, compared to $27.644 billion in 2023, an increase of 16.5%[425]. - The net income per weighted average share of common stock outstanding increased to $7.16 in 2024 from $3.63 in 2023, a growth of 97.3%[421]. - The company reported a net change in cash of $(2,317) million in 2024, contrasting with a positive change of $3,014 million in 2023[432]. - The company experienced a net unrealized loss from mark-to-market valuations of commodities amounting to $(1,155) million in 2024[430]. Debt and Financing - As of December 31, 2024, Vistra has approximately $3.5 billion in principal amount of variable rate debt, with $2.3 billion hedged through interest rate swaps[399]. - Issuances of long-term debt rose to $3,817 million in 2024, up from $2,498 million in 2023[432]. - The total long-term debt, including amounts due currently, increased to $16.298 billion in 2024 from $14.402 billion in 2023, reflecting a growth of approximately 13.2%[562]. - The Revolving Credit Facility was increased from $3.175 billion to $3.440 billion in October 2024, extending its maturity date to October 11, 2029[571]. - The estimated long-term debt maturities for 2025 are projected at $885 million, with a significant increase to $3.427 billion in 2027[566]. - The company has identified its retail trade name intangible assets as indefinite-lived, with an evaluation indicating that their fair value exceeds carrying value as of October 1, 2024[553]. Acquisitions and Mergers - The company completed the acquisition of Energy Harbor Holdings LLC for a total cash consideration of $3.1 billion, along with a 15% minority interest valued at $1.5 billion, totaling $4.6 billion[413]. - The Energy Harbor Merger resulted in a total purchase price of $4,596 million, including cash consideration of $3,100 million and 15% of the fair value of net assets contributed to Vistra Vision valued at $1,496 million[486]. - The acquisition date fair value of Energy Harbor was $5,407 million, which includes identifiable net assets acquired of $5,183 million and goodwill of $224 million[490]. - Acquisition costs incurred in the Energy Harbor Merger totaled $25 million for the year ended December 31, 2024, compared to $24 million in 2023, classified as selling, general, and administrative expenses[493]. - Vistra Operations acquired a combined 15% noncontrolling interest in Vistra Vision for approximately $3.2 billion in cash, closing the transaction on December 31, 2024[494]. Risk Management - The company employs various risk management practices, including Value at Risk (VaR) methodologies and stress test scenarios, to monitor market risks[392]. - The company’s credit risk is minimized through evaluating potential counterparties and employing risk mitigation practices such as margin deposits and letters of credit[400]. - The average Value at Risk (VaR) for Vistra's commodity portfolio increased to $236 million in 2024 from $190 million in 2023, reflecting higher volumes following the Energy Harbor Merger[397]. - The average VaR for 2024 reflects a high of $371 million and a low of $86 million, indicating fluctuations in market conditions[397]. Tax and Regulatory Matters - The company is eligible for the nuclear Production Tax Credit (PTC) starting in 2024, which provides support as unit revenues decline[394]. - The company qualifies for tax incentives under the Inflation Reduction Act of 2022, which may provide transferable tax credits[454]. - The effective tax rate for the year ended December 31, 2024, was 18.9%, compared to 25.4% in 2023[523]. - The company has $3.2 billion in pre-tax net operating loss (NOL) carryforwards for federal income tax purposes that will begin to expire in 2031[525]. Segment Performance - The company operates five reportable segments: Retail, Texas, East, West, and Asset Closure, indicating a diversified business model[443]. - Revenue from retail energy charges in ERCOT increased to $8.064 billion in 2024, up from $7.674 billion in 2023, reflecting a growth of 5.1%[496][499]. - Wholesale generation revenue from ISO/RTOs totaled $1.978 billion in 2024, compared to $2.909 billion in 2023, indicating a decline of approximately 32%[496][499]. - The East segment reported total revenues of $5.394 billion in 2024, up from $3.979 billion in 2023, marking an increase of about 35.5%[496][499]. Asset Management - The company recorded $5.6 billion in property, plant, and equipment, which includes the value of three nuclear power plants acquired[414]. - Property, plant, and equipment net value increased to $18.173 billion in 2024 from $12.432 billion in 2023, with total depreciation expenses of $1.670 billion in 2024[537]. - The balance of accumulated depreciation increased to $8.020 billion in 2024 from $6.657 billion in 2023[537]. - The company’s construction work in progress increased to $1.060 billion in 2024 from $522 million in 2023[537]. Cash Flow and Investments - Cash provided by operating activities was $4,563 million in 2024, compared to $5,453 million in 2023[430]. - Total cash used in investing activities increased to $5,276 million in 2024 from $2,145 million in 2023[432]. - The ending balance of cash, cash equivalents, and restricted cash decreased to $1,222 million in 2024 from $3,539 million in 2023[432]. - Capital expenditures, including nuclear fuel purchases, totaled $2,078 million in 2024, compared to $1,676 million in 2023[430].