5. Vistra Corp. (NYSE:VST)
Number of Hedge Fund Holders as of Q4: 120
Appaloosa Management’s Equity Stake: $372.25 Million
Vistra Corp. (NYSE:VST), a leading integrated retail electricity and power generation company, delivered a strong financial and operational performance for 2024, driven by its diverse portfolio that spans natural gas, nuclear, coal, solar, and battery storage facilities. Following its series of acquisitions in 2024, Vistra now stands as the second-largest competitive nuclear operator in the United States. For the quarter ending December 2024, the company reported a net income of $490 million. Over the full year, the company generated $4.56 billion in cash flow from operations, with net income from ongoing operations reaching $2.93 billion. Its ongoing operations adjusted EBITDA totaled $5.66 billion, surpassing the midpoint of its initial guidance by $856 million.
Reaffirming its financial strength and growth outlook, Vistra Corp. (NYSE:VST) provided 2025 guidance projecting ongoing operations adjusted EBITDA between $5.5 billion and $6.1 billion, with adjusted free cash flow before growth expected to range from $3.0 billion to $3.6 billion. The company reported securing hedging coverage for nearly all of its anticipated generation volumes for 2025 and about 80% for 2026, demonstrating a disciplined risk management approach.
Meanwhile, Vistra Corp. (NYSE:VST) made headlines earlier this month by officially withdrawing a 2020 proposal to redevelop part of the retired Morro Bay Power Plant at 1290 Embarcadero into a large-scale battery energy storage system. The initial proposal, which would have transformed a 22-acre portion of the site into a battery storage facility capable of powering about 450,000 homes, was expected to generate an estimated $4.8 million in annual property tax payments for San Luis Obispo County if fully funded. However, in March 2025, the City of Morro Bay formally requested a transfer of the property into city ownership. In response, Vistra declined the request in its April letter and withdrew its development application, asking the city to halt further processing of the proposal. While the future of the Morro Bay site remains uncertain, Vistra reaffirmed its commitment to exploring opportunities that align with its corporate objective.
Carillon Eagle Mid Cap Growth Fund stated the following regarding Vistra Corp. (NYSE:VST) in its Q3 2024 investor letter:
“Vistra Corp. (NYSE:VST) is an integrated retail electricity and power generation company. As an independent power producer (IPP), Vistra primarily generates revenue from selling its generated power at the prevailing market price. As a result of recent growth in future power demand, the company’s shares have soared on investors’ expectations for future power prices. The potential for Vistra to announce future power purchase agreements (PPAs) with large technology companies in order to satisfy the extraordinary power requirements of these companies’ artificial intelligence (AI) endeavors, in a similar manner to some of Vistra’s closest IPP peers, has also provided a tailwind for the stock.”
