Why Vistra Shares Are Trading Higher Today

Vistra VST shares are trading higher on Tuesday after the company announced an agreement with Energy Harbor, under which Energy Harbor will merge with and into a newly-formed subsidiary called Vistra Vision. The company also announced it increased aggregate share repurchase authorization by $1 billion.

Consideration to Energy Harbor includes $3 billion cash and a 15% ownership interest in Vistra Vision. Vistra Vision will assume approximately $430 million of net debt from Energy Harbor.

Vistra will own 85% of Vistra Vision as well as 100% of the entities holding its remaining conventional generation assets, referred to as "Vistra Tradition."

Vistra President and CEO Jim Burke stated, “Vistra has been focused on responsibly transitioning our power generation profile, and though we've made significant progress over the past several years, there are few opportunities to grow a reliable and dispatchable zero-carbon generation portfolio at scale this quickly. As our country navigates a massive energy transition to cleaner sources of electricity, nuclear energy provides the unique capability of being both carbon-free and a dependable, always-on source of reliable power."

Analyst Changes: BMO Capital analyst James Thalacker maintained Vistra with an Outperform and raised the price target from $32 to $35.

Vistra is an integrated retail electricity and power generation company based in Irving, Texas, providing essential resources for customers, commerce and communities.

VST Price Action: Vistra has a 52-week high of $27.39 and a 52-week low of $20.76.

Vistra shares are up 9.39% at $26.67 at the time of writing, according to Benzinga Pro.