Vistra to acquire natural gas assets for $1.9 billion amid soaring power demands
US power company Vistra announced yesterday it will purchase seven natural gas generation facilities from Lotus Infrastructure Partners for $1.9 billion, as it moves to meet growing electricity demands across America.
The acquisition includes five combined cycle gas turbine facilities and two combustion turbine facilities located across multiple US regions, adding approximately 2,600 megawatts to Vistra's generation portfolio at a cost of roughly $743 per kilowatt of capacity.
The purchase comes as the US Energy Information Administration forecasts electricity consumption to reach record levels in 2025 and 2026, driven largely by surging demand from data centres supporting artificial intelligence technologies.
"We believe natural gas fired generation will continue to play an ever-increasing role in the reliability, affordability, and flexibility of US power grids for years to come," said Vistra President and CEO Jim Burke.
The Fortune 500 utility company expects the transaction to deliver immediate benefits to shareholders, including accretion to adjusted free cash flow in the first year following completion.
Vistra plans to fund the purchase through assumption of an existing term loan from Lotus, expected to cover approximately 50% of the consideration, with the remainder paid in cash.
The deal requires regulatory approvals from the Federal Energy Regulatory Commission and the Department of Justice, with completion anticipated in late 2025 or early 2026.
