Vistra Corp. (VST) is an integrated retail and electric power generation company with approximately 4.5 million customers in 20 states and Washington D.C., and 38,700 MW of electricity generation from natural gas, nuclear, coal, solar and battery energy storage facilities.
The company generated 25% of its revenue from Texas, 51% from retail, 15% from the East, 8% from Sunset and 1% from West markets during 2020. In terms of its energy mix, the company continues to develop nearly 850 MW of renewable generation projects in Texas with the goal of reducing its greenhouse gas emissions by 60% by 2030.
Recovering From a Historic Freeze
Vistra anticipates a $900 million to $1.3 billion impact from Winter Storm Uri, which hit Texas in February and caused state-wide blackouts. While the stock price fell sharply in response, Bank of America analyst Julien Dumoulin-Smith recently upgraded the stock, saying it’s an almost one-time event that’s very unlikely to reoccur. As of February 25, the company had more than $1.5 billion in cash and liquidity to address these costs.
The company raised its quarterly dividend by 11.1% to $0.15 per share, which represents a 3.19% forward yield. The dividend is payable on March 31, 2021 to shareholders on record as of March 17, 2021. The company also continues to repurchase shares under a $1.5 billion repurchase program.
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