Utility Vistra buys natural gas assets worth $1.9 billion for power needs

Vistra, a utility, announced on Thursday that it will acquire seven natural-gas generation facilities with a combined power of 2,600 megawatts from Lotus Infrastructure Partners, for $1.9 billion. The move is part of its efforts to meet the growing demand for electricity. According to the U.S. Energy Information Administration, electricity consumption will reach record levels in 2025-2026 due to the surge in demand from data centres looking to match Big Tech AI ambitions.

Vistra reported that the deal included five combined cycle gas-turbine facilities and two combustion turbo turbine facilities spread across PJM New England, New York, and California.

PJM Interconnection, a regional transmission organisation that coordinates wholesale electricity movement in certain parts of Eastern United States. It includes parts of 13 different states, from Illinois to New Jersey.

According to CEO Jim Burke, the acquisition will expand Vistra’s footprint in key markets, and meet growing power demand. It is also expected to exceed its mid-teens leveraged return target.

Vistra anticipates funding the transaction by assuming an existing term loan with Lotus and using cash on hand.

Lotus, a Greenwich-based private equity firm that specializes in energy infrastructure investment, is located in Connecticut.

The company stated that the transaction, which is expected to close in late 2025 to early 2026, will be subject to regulatory approvals from various agencies including the Federal Energy Regulatory Commission (FERC) and the Department of Justice.

Vistra shares rose by nearly 1.9% during extended trading. (Reporting and editing by Shilpa Majumdar in Bengaluru, Pooja menon from Bengaluru)

(source: Reuters)