Why Is Vistra (VST) Stock Surging Today? Company Announces Cogentrix Deal

Vistra Corp. (NYSE: VST) stock jumped 4.63% in pre-market trading on January 6, 2026, reaching $170.56 at 6:17:36 AM EST, following the company’s announcement of a major acquisition. The power generation giant revealed it has executed definitive agreements to acquire Cogentrix Energy from Quantum Capital Group in a deal valued at approximately $4 billion.

The transaction includes 10 modern natural gas generation facilities totaling roughly 5,500 megawatts of capacity across key U.S. power markets, marking Vistra’s second significant expansion of its generation footprint within the past year.

Cogentrix Deal Expands Vistra’s Natural Gas Generation Portfolio

The acquisition’s net purchase price of approximately $4 billion comprises $2.3 billion in cash, $900 million in Vistra stock (5 million shares valued at $185 per share), and the assumption of $1.5 billion in debt, offset by $700 million in expected tax benefits. This translates to an attractive purchase price of approximately $730 per kilowatt of capacity and a multiple of roughly 7.25 times the 2027 expected Adjusted EBITDA contribution.

The Cogentrix portfolio includes three combined cycle gas turbine facilities and two combustion turbine facilities in PJM, four combined cycle facilities in ISO New England, and one cogeneration facility in ERCOT.

Vistra President and CEO Jim Burke highlighted that the acquisition represents the company’s second opportunistic expansion within a year, following its $1.9 billion deal in May 2025 for seven gas-fired plants. The Cogentrix assets feature modern, efficient technology with an average heat rate of approximately 7,800 Btu/kWh, including the high-efficiency Patriot and Hamilton-Liberty plants with sub-7,000 Btu/kWh heat rates.

This acquisition expands Vistra’s total generation portfolio to approximately 50,000 MW of capacity across the United States, strengthening its position in some of the most attractive and fastest-growing power regions in North America.

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VST Stock Performance and Market Reaction

The acquisition is expected to deliver immediate shareholder value with mid-single digit Ongoing Operations Adjusted Free Cash Flow before Growth per share accretion in 2027 and high single-digit accretion on average over the 2027-2029 period.

Vistra expects the transaction to exceed its mid-teens levered return target while maintaining the strength of its balance sheet and investment-grade credit ratings. The company is reiterating its capital allocation plan, including a long-term net leverage target of less than 3x, planned annual dividends of $300 million, and at least $1 billion in share repurchases each year.

At market close on January 5, 2026, VST traded at $162.93, down 1.39% for the day, but showing remarkable long-term performance with a 3-year return of 662.37% and 5-year return of 814.09%, significantly outperforming the S&P 500. The company’s market capitalization stood at $55.2 billion with a PE ratio of 58.40 and analyst price targets ranging from $86 to $324, with an average target of $232.05.

The transaction is subject to regulatory approvals and is expected to close in mid-to-late 2026, pending clearance from the Federal Energy Regulatory Commission, the Department of Justice, and certain state regulatory bodies.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.