Vistra has signed a deal with Cogentrix to buy 5,500 MW of natural gas units in PJM, New England and Texas for $4 billion, the companies announced Jan. 5.
The deal includes three combined cycle plants and two combustion turbine facilities in PJM, four combined cycle facilities in ISO-NE and a cogeneration plant in ERCOT. Vistra is putting up $2.3 billion of cash, $900 million of stock and the assumption of $1.5 billion in debt, minus about $700 million of net present value in tax benefits.
“The Vistra team is excited to announce the acquisition of the Cogentrix portfolio, marking the second opportunistic expansion of our generation footprint over the past year to support our ability to serve growing customer demand in our key markets,” Vistra CEO Jim Burke said in a statement. “Successfully integrating and operating generation assets is a major undertaking, and our talented team continues to demonstrate that it is a core competency of our company.”
The new natural gas generator portfolio will help Vistra meet the growing demand of its customers, Burke said. He added that the company continues to look for additional opportunities to expand supply that meet its “disciplined investment thresholds.”
Cogentrix is owned by the energy-focused private equity firm Quantum Capital Group. The sale represents “substantially all of its portfolio,” Quantum CEO Wil VanLoh said.
“We are excited to become shareholders of Vistra and have much confidence in Vistra’s ability to deliver long-term value through its industry-leading portfolio and operational excellence,” VanLoh said in a statement. “Quantum thanks the Cogentrix team for their partnership and looks forward to seeing the business continue to grow as part of Vistra.”
Two of the plants — the Patriot and Hamilton Liberty combined cycle generators in Pennsylvania — are only majority-owned by Cogentrix, but Vistra is buying 100% ownership in them.
The plants are modern and efficient and add baseload capacity that complements Vistra’s existing units, the company said. The portfolio averages a heat rate of 7,800 Btu/kWh, while the Patriot and Hamilton Liberty plants are just 10 years old and more efficient at 7,000 Btu/kWh.
The capacity is in three of the most attractive and fastest growing markets in the country, and once the deal closes, Vistra’s U.S. fleet will total 50 GW.
The deal needs approvals from FERC, the Department of Justice under the Hart-Scott-Rodino Act and some state regulators. Vistra hopes to close it later in 2026.
