New York, January 7, 2026, 14:57 EST — Regular session
Vistra Corp (NYSE:VST) shares fell about 8% to $155.93 on Wednesday afternoon. The stock was down $13.60 from its previous close.
Moody’s affirmed Vistra’s Ba1 corporate family rating but revised its outlook to stable from positive after the company agreed to buy a 5.5-gigawatt gas portfolio from Cogentrix. The agency cited Vistra’s “acquisitive appetite and financial policy,” saying the transaction delays the company’s expected deleveraging. 1
Vistra announced on Monday it would buy Cogentrix Energy from Quantum Capital Group for about $4.7 billion, adding 10 natural gas plants across PJM, ISO New England and ERCOT. The U.S. Energy Information Administration expects U.S. electricity use to hit record highs in 2026, helped by data centers built to support Big Tech’s AI push. Chief executive Jim Burke called the purchase “a great way to start another year of growth.” 2
Other U.S. power producers were lower too, with NRG Energy down about 6% and Constellation Energy and Talen Energy off roughly 5% each.
In a separate release, Vistra put the net purchase price at about $4.0 billion after expected tax benefits and pegged the valuation at about $730 per kilowatt of capacity. It said the deal should be accretive — adding to per-share cash flow — from 2027 and reiterated plans for a long-term net leverage target below 3x, a $300 million annual dividend and at least $1 billion of share repurchases each year. Quantum founder Wil VanLoh said the seller was “excited to become shareholders of Vistra.” 3
A securities filing showed Vistra expects to finance the cash portion with debt, including up to $2.0 billion of senior secured bridge loans committed by Goldman Sachs Bank USA; bridge loans are short-term funding meant to be refinanced later. The filing also detailed “reverse termination fees” of about $77.8 million under the purchase agreement and $72.2 million under the merger agreement if Vistra fails to close under certain conditions. 4
Jefferies analyst Julien Demoulin-Smith wrote that the portfolio is “attractively priced” and said the move into New England “makes abundant sense,” calling ISO New England one of the more attractive U.S. power markets. 5
Still, the market is pricing in plenty of execution. A slip in approvals, softer wholesale power prices or higher funding costs could thin the deal’s expected cash-flow lift and keep the credit debate alive.
Investors are now watching for updates on financing and regulatory reviews, and for how much headroom Vistra keeps for buybacks while it absorbs the new plants. The company is estimated to report earnings on Feb. 26, according to Nasdaq. 6
