New York, Jan 6, 2026, 08:38 EST — Premarket
- Vistra shares rose about 4.5% in premarket trading after it struck a deal for Cogentrix Energy
- The acquisition adds about 5,500 MW of gas-fired capacity across three major U.S. power markets
- Traders are watching financing details, regulatory approvals and Vistra’s next earnings update
Vistra Corp shares were up about 4.5% in premarket trading on Tuesday after the U.S. power producer agreed to buy privately held Cogentrix Energy, extending a dealmaking push aimed at meeting fast-rising electricity demand. Barron’s
Vistra said it would pay about $4.7 billion for the portfolio, using roughly $2.3 billion in cash, about $900 million in Vistra stock and the assumption of about $1.5 billion of debt, partly offset by expected tax benefits. The acquisition lands as U.S. utilities and power firms position for heavier loads from data centers; the U.S. Energy Information Administration expects electricity consumption to reach record highs in 2026, Reuters reported. Reuters
Vistra said the deal includes 10 modern natural-gas plants totaling about 5,500 megawatts across PJM, ISO New England and ERCOT — the grid operators that run wholesale power markets in the Mid-Atlantic, New England and Texas. Vistra put the net purchase price at about $4.0 billion and said it expects mid-single-digit ongoing free cash flow per share accretion in 2027, with a valuation of about 7.25 times expected 2027 adjusted EBITDA — a common cash-earnings gauge — and roughly $730 per kilowatt of capacity. “Successfully integrating and operating generation assets is a major undertaking,” CEO Jim Burke said, adding the company expects to close the deal in mid-to-late 2026, subject to approvals. Vistra Corp. Investor Relations
A securities filing showed Vistra expects to fund the cash portion with debt and has a $2.0 billion, 364-day bridge loan commitment from Goldman Sachs lined up as backstop financing. The filing also detailed required approvals, including from the Federal Energy Regulatory Commission and U.S. antitrust review, and outlined reverse termination fees — breakup payments due if the buyer fails to close after conditions are met. SEC
BMO Capital lowered its price target on Vistra to $230 from $245 while keeping an Outperform rating after the announcement, according to TheFly. TipRanks
The stock ended regular trading on Monday down 1.4% at $162.93, lagging a broader market rise before the company announced the deal after the bell. MarketWatch
Morgan Stanley analyst David Arcaro estimated the acquisition could add $5 to $10 per share in value, Investors.com reported, though the publication noted the stock remained below its 200-day moving average — a long-term trend line watched by chart-focused investors. Investors
The near-term risk is execution: regulators can stretch timelines, higher rates can lift financing costs before permanent debt is locked in, and power prices can swing with weather and gas markets, pressuring cash returns from merchant generation.
