Summary
Vistra Corp. (VST) has announced significant long-term agreements with Meta Platforms, Inc. (Meta), entering into 20-year power purchase agreements (PPAs) to supply 2,609 MW of carbon-free power and capacity from its PJM nuclear fleet. These PPAs include both existing operating power from the Perry and Davis-Besse plants, as well as uprated capacity from Perry, Davis-Besse, and Beaver Valley. This strategic move is expected to significantly enhance Vistra's financial performance, with projected incremental Adjusted Free Cash Flow before Growth accretion of 8%-10% from operating capacity and an additional 5%-7% from uprated capacity, alongside strong levered return targets.
Key Highlights
- 1Vistra has secured 20-year PPAs with Meta for 2,609 MW of carbon-free nuclear power and capacity.
- 2The PPAs cover both existing operating capacity and future uprated capacity from Vistra's Perry, Davis-Besse, and Beaver Valley nuclear plants.
- 3Delivery of operating capacity is expected to commence in late 2026, with full delivery by year-end 2027.
- 4Delivery of uprated capacity is anticipated to begin by 2031 and be completed by year-end 2034, requiring capital expenditures between 2026 and 2034.
- 5Vistra expects these uprate investments to meet or exceed its mid-teens levered return target.
- 6The company forecasts incremental Adjusted Free Cash Flow before Growth accretion of approximately 8%-10% from operating capacity and 5%-7% from uprated capacity at full delivery.
- 7Vistra anticipates converting incremental Adjusted EBITDA to Adjusted Free Cash Flow before Growth at a weighted average ratio of approximately 80% for these PPAs.