Vistra Corp. has agreed to acquire the Cogentrix Energy portfolio for $4 billion, expanding its U.S. generation footprint with 5,500 MW of modern gas-fired capacity in key power markets. The deal values the assets at $730 per kilowatt, with an expected enterprise multiple of 7.25 times 2027 EBITDA.

The portfolio includes ten gas-fired facilities with efficient heat rates, deepening Vistra’s presence in PJM, ISO New England, and ERCOT. Vistra will pay $2.3 billion in cash, issue $0.9 billion in stock, and assume $1.5 billion in debt, aiming for long-term leverage below 3x and maintaining capital return plans.

The acquisition aligns with rising electricity demand trends, emphasizing the importance of gas generation for grid stability amid renewable energy growth. Vistra’s strategic repositioning focuses on capitalizing on these trends, expecting to reach nearly 50,000 MW of total generation capacity post-integration of Cogentrix assets.

The deal is subject to regulatory approvals and is expected to close in the second half of 2026. Vistra anticipates significant benefits from the transaction, enhancing its position in growing power markets and reinforcing its commitment to shareholder returns through dividends and share repurchases.

Source: Oilprice.com

Read more at Yahoo Finance: Vistra Expands Gas Fleet With $4 Billion Cogentrix Acquisition