On November 7, 2023, Vistra Corp (VST, Financial) released its third-quarter 2023 financial results. The company reported a net income of $502 million, a decrease from $678 million in the same quarter of the previous year. The ongoing operations net income stood at $519 million, while the ongoing operations adjusted EBITDA was $1,613 million.
Financial Performance and Highlights
Despite challenging weather and load conditions, Vistra Corp (VST, Financial) delivered strong results in Q3 2023. The company's generation team produced 2.5 terawatt hours more than any other quarter's generation output in the past decade. This performance was driven by a record-breaking summer in Texas, with the state experiencing the hottest third quarter on record and setting new peak demand records on 10 different occasions.
Vistra delivered $1,613 million in Ongoing Operations Adjusted EBITDA in the third quarter of 2023, underscoring our core competencies in generation, retail, and commercial activities in a variety of weather and load conditions experienced this past quarter across the markets we serve," said Jim Burke, president and CEO of Vistra.
Financial Results Summary
For the third quarter ended September 30, 2023, Vistra reported a net income of $502 million, a decrease of $176 million from Q3 2022. This decrease was primarily due to higher unrealized hedging losses in the quarter, offset by strong operating performances by the company's generation, retail, and commercial teams. The ongoing operations adjusted EBITDA for Q3 2023 was $573 million higher than Q3 2022, driven primarily by higher energy margins achieved through strong operating results and a comprehensive hedging strategy.
Capital Allocation and Guidance
Vistra Corp (VST, Financial) continues to deliver on its capital allocation program, having returned approximately $3.785 billion to shareholders since the program's announcement in Q4 2021. The company has also initiated its 2024 guidance, with ongoing operations adjusted EBITDA expected to range between $3,700 million and $4,100 million.
Clean Energy Transition and Liquidity
Vistra Corp (VST, Financial) remains committed to supporting the clean-energy transition. The company is advancing its fleet of lower carbon resources through strategic investments in solar and battery storage developments. As of September 30, 2023, Vistra had total available liquidity of approximately $4,420 million.
Looking Forward
Vistra Corp (VST, Financial) looks forward to concluding 2023 on a strong note and beginning its execution against its 2024 financial and performance targets. The company remains focused on producing strong, stable earnings through its integrated business, returning capital to shareholders, maintaining balance sheet strength, and supporting the clean-energy transition.
Explore the complete 8-K earnings release (here) from Vistra Corp for further details.
