Latest news with #LotusInfrastructure
Yahoo
18-05-2025
- Business
- Yahoo
Vistra Corp. (VST) Bets on AI Power Demand With $1.9 Billion Natural Gas Deal
Vistra Corp. (NYSE:VST) has recently agreed to acquire seven natural gas power plants for $1.9 billion from Lotus Infrastructure Partners, aiming to meet the growing energy needs driven by artificial intelligence. VST is a Texas-based electricity and power generation company that offers essential power resources to its customers. The deal will add 2,600 megawatts of capacity across five states—mainly in the Northeast—boosting Vistra's already extensive power generation portfolio from California to Maine. This capacity is roughly equal to 2.5 nuclear reactors. According to Glenrock Associates analyst Paul Patterson, the move reflects a broader trend among independent power producers capitalizing on the surge in data center demand. Investors have been responding positively to such acquisitions, marking a shift from years of industry struggles and bankruptcies. Patterson noted that while Vistra's move isn't surprising, more similar deals are likely on the horizon. In addition to Vistra Corp. (NYSE:VST)'s growth strategy, the company is also a strong dividend payer. On May 2, it announced a 1% hike in its quarterly dividend to $0.225 per share. Through this increase, the company stretched its dividend growth streak to 13 years. In the past 12 months, the stock has surged by over 71%, outperforming the broader market. While we acknowledge the potential of VST to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VST and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-05-2025
- Business
- Yahoo
Vistra to buy 2.6GW generation capacity from Lotus for $1.9bn
Integrated retail electricity and power generation company Vistra has agreed with Lotus Infrastructure Partners to acquire its portfolio of natural gas generation facilities, with a combined capacity of 2.6GW, for $1.9bn. The move enhances the geographical diversification of Vistra's natural gas fleet. The acquisition includes five combined-cycle gas turbine facilities and two combustion turbine facilities strategically located across the Pennsylvania-New Jersey-Maryland region, New England, New York and California. Vistra president and CEO Jim Burke stated: "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. The addition of this attractive portfolio of combined cycle and peaking assets allows Vistra to serve growing power demand while exceeding our mid-teens levered return target." The funding strategy for the acquisition involves assuming an existing term loan from Lotus and utilising cash on hand. The term loan is projected to cover 50% of the closing consideration. The purchase price of the assets suggests a multiple of around seven times the projected 2026 adjusted EBITDA (earnings before interest, taxation, depreciation and amortisation), not accounting for any potential synergies. The completion of the transaction is set for late 2025 or early 2026 and is contingent upon regulatory approvals from the Federal Energy Regulatory Commission and the Department of Justice, in compliance with the Hart-Scott-Rodino Act. Lotus Infrastructure Partners chairman and CEO Himanshu Saxena stated: "We are pleased to have reached an agreement to sell this gas plant portfolio to a proven operator like Vistra. "The Lotus team has acquired, developed and operated this portfolio of high-quality assets for many years, which has helped us deliver this win-win transaction for our investors." Barclays and Moelis & Company are acting as financial advisors, while Latham & Watkins and Cleary Gottlieb Steen & Hamilton are providing legal counsel to Vistra. Lazard is the exclusive financial advisor to Lotus Infrastructure Partners, with King & Spalding and Eversheds Sutherland offering legal advice. In September 2024, Vistra announced definitive agreements to acquire a 15% equity interest in its subsidiary Vistra Vision from affiliates of Nuveen Asset Management and Avenue Capital Management II. "Vistra to buy 2.6GW generation capacity from Lotus for $1.9bn" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Reuters
15-05-2025
- Business
- Reuters
Utility Vistra to buy natural gas assets for $1.9 billion
May 15 (Reuters) - Utility Vistra (VST.N), opens new tab said on Thursday it would acquire seven natural gas generation facilities, with a combined capacity of nearly 2,600 megawatt, from Lotus Infrastructure Partners for $1.9 billion, as it looks to meet growing power demand. The deal includes five combined cycle gas turbine facilities and two combustion turbine facilities located across PJM, New England, New York and California. PJM Interconnection is a regional transmission organization that coordinates the movement of wholesale electricity in parts of the Eastern United States. It covers parts of 13 states from Illinois to New Jersey. The acquisition is expected to expand Vistra's footprint in key competitive markets and serve growing power demand, while exceeding its mid-teens levered return target, the company said. Shares of the utility rose nearly 1.4% in extended trading. The transaction is expected to close sometime in late 2025 or early 2026.
Associated Press
14-05-2025
- Business
- Associated Press
NeuVentus Announces Open Season for up to 20 Billion Cubic Feet of Gas Storage at the TRU Hub Salt Cavern Storage Project
AUSTIN, Texas & HOUSTON--(BUSINESS WIRE)--May 14, 2025-- NeuVentus, LLC ('NeuVentus'), a Texas energy delivery infrastructure developer, announced today that it is holding a non-binding open season for natural gas storage at its Texas Reliability Underground Hub ('TRU Hub') salt cavern storage project located in Liberty County, Texas. Bidding Process The bidding process begins at 9:00 a.m. Central Time on Wednesday, May 14, 2025, and concludes at 5:00 p.m. Central Time on Friday, June 27, 2025. For information regarding TRU Hub's open season and storage capabilities and to submit non-binding bids for storage capacity, all interested parties are invited to contact NeuVentus by emailing [email protected]. Bid Form The bid notice containing the bid form with details regarding the open season is available on the NeuVentus website at About NeuVentus NeuVentus is a privately-owned developer-owner-operator of pipeline transportation and storage projects. NeuVentus is a wholly owned subsidiary of Lotus Infrastructure Partners. For more information, please visit About TRU Hub Located 40 miles east of Houston, Texas Reliability Underground Hub (TRU Hub) is a fully permitted 12-cavern salt storage project, sited at the Moss Bluff salt dome. When fully developed, TRU Hub's 12 salt caverns will represent approximate total capacity of up to 96 billion cubic feet (96 Bcf) of high-deliverability gas capacity, 128 million barrels (128 MMbbls) of liquids storage, or a combination of gas and liquids cavern capacity. TRU Hub will provide access to multiple pipeline interconnections for transportation of stored energy products to multiple customer destinations. For additional details about TRU Hub, please visit About Lotus Infrastructure Partners Lotus Infrastructure specializes in infrastructure investments including renewable power generation, battery storage, renewable and low-carbon fuels, electric transmission, thermal power, and midstream and downstream assets. Lotus Infrastructure has raised in excess of $3 billion of equity capital and has executed transactions totaling more than $8 billion in enterprise value, inclusive of approximately $2.8 billion in enterprise value related to the development and construction of renewable assets. The Lotus Infrastructure team brings extensive multi-functional expertise to its investments including development, construction, operations, acquisition and financing. Please visit View source version on CONTACT: Media Contact: Redbird Communications Bevo Beaven Mobile: 720-666-5064 Email:[email protected] KEYWORD: UNITED STATES NORTH AMERICA TEXAS INDUSTRY KEYWORD: DATA MANAGEMENT TECHNOLOGY OTHER POLICY ISSUES MARITIME OTHER ENERGY TRANSPORT UTILITIES OIL/GAS ALTERNATIVE ENERGY PUBLIC POLICY/GOVERNMENT ENERGY SOURCE: NeuVentus, LLC Copyright Business Wire 2025. PUB: 05/14/2025 08:00 AM/DISC: 05/14/2025 07:59 AM
