Vistra Shares Gain Post Q2 Results; Revenue Doubles

Vistra Corp VST reported Q2 FY23 sales of $3.19 billion, which more than doubled from the prior year.

Net income from ongoing operations stood at $409 million vs. a loss of $(1.30) billion.

Adjusted EBITDA from ongoing operations of $1.01 billion came higher than $756 million a year ago, led by increased energy margins on a hedging strategy, backing down generation when prices were below unit costs and strong counts and margins in the retail segment.

As of June 30, 2023, Vistra had hedged around 86% of its expected generation volumes on average for 2023 to 2025, with the balance of 2023 hedged at around 98% and 2024 hedged at about 95%. 

As of June 30, 2023, Vistra had cash and cash equivalents of $698 million, $1.503 billion under its corporate revolving credit facility, and $326 million under its commodity-linked revolving credit facility.

Repurchase: The company bought back around $2.9 billion from November 2, 2021, through August 4, 2023.

As of August 4, 2023, Vistra had around $1.35 billion remaining under its $4.25 billion share repurchase authorization program, to be utilized by 2024.

Dividend: The company declared Q3 dividend per share of $0.2060 to be paid on September 29, 2023. 

"We remain committed to disciplined growth of our zero-carbon portfolio while focusing on grid reliability. The 350-megawatt Phase III expansion of our Moss Landing Energy Storage Facility achieved commercial operation during the second quarter, ahead of schedule and on budget, bringing our Vistra Zero portfolio currently online to approximately 3,750 MW, including our nuclear facility Comanche Peak. We also continue to progress towards a fourth quarter closing of the acquisition of Energy Harbor Corp. that we announced earlier this year, which will increase our nuclear generation to more than 6,400 MW," said Jim Burke, president, and CEO.

Outlook: Vistra narrowed FY23 adjusted EBITDA to $3.6 billion - $4 billion from $3.4 billion - $4 billion prior.

The company raised the adjusted EBITDA midpoint opportunities outlook for 2024 and 2025 to $3.7 billion to $3.8 billion from $3.5 billion to $3.7 billion prior.          

Price Action: VST shares are trading higher by 5.55% at $30.42 on the last check Wednesday.