Vistra (VST) 7 Nov 242024 Q3 Earnings call transcript

Good morning, and welcome to Vistra's Third Quarter 2024 Earnings Call. [Operator Instructions] Plase note this event is being recorded. I would now like to turn the conference over to Eric Micek, Vice President, Investor Relations. Please go ahead.

Good morning, and thank you for joining Vistra's investor webcast discussing our third quarter 2020 results.

being website from at is section Investor today our of www.vistracorp.com. discussion broadcast the live Relations Our There, you can presentation and also find copies release. of earnings today's investor Leading President and President Financial Officer. Burke, and are Moldevan, Chief the Executive Kris Vice Chief Officer; Vistar's Executive Vistra's call today and Jim They by senior other executives during address questions are second as part necessary. joined the of Vistra's to today's call

and materially projected safe investor harbor statements. our on differ listeners on the I review to the in of most forward-looking Such results X of to Slide from encourage and forward-looking include based directly matters appendix section are our website on references and We available actual or assume statements GAAP could and obligation release, update other those Also, discussed Reconciliations website. on presentation assumptions to cause all to no call to uncertainties the release the statements we measures. non-GAAP that presentation the provided are today's today's date. and the implied. certain included subject CEO, Burke. data to risks explains be to Visa's certain as President to now discussion are today comparable over certain our measures. that Investor presentation non-GAAP in and turn Jim measures believe the limitations I'll of risks included presentation and industry financial the forward-looking only which earnings in forward-looking financial Earnings the the of statements Relations the investor the contains statements, to market of reasonable use the in call

what morning, value has of Vistra in quarter operational to team far long-term been active on been Good to and for I'm of and financial able has the number you thank Thank the us third stage creation. It so for XXXX and proud a while discuss deliver an XXXX year very results. setting fronts, our you, joining Eric.

a we recognize to despite results another ongoing would work quarterly I operational of we X. and and consistent hard delivered have the team strong weather Slide the from The the across a billion of retail that year. like and execution model. milder commercial operations integrated of quarter reflect efforts, for customer financial our our Vistra to reliable continuation of experienced $X.XXX Turning generation, achieved their solid team strength EBITDA Through solutions the adjusted Texas of most business power performance. of

of second range. end operations that was quarter As XXXX outlook guidance end you our I range we guidance we ongoing results quarter previous EBITDA results $X.X indicated announced upper our pleased ongoing billion of adjusted the a and operations to midpoint the with EBITDA above to our am narrowing the raising may are adjusted and upper today to XXXX the billion toward for fourth remember $X.X range. our the report from for our call, trending with

We are billion. also before $X.XX narrowing flow range cash $X.XX operations free adjusted guidance to billion for and to ongoing raising growth the

tax results the credit, treasury As guidance PTC, we benefit the from production or call, gross to potential on any of we around our related noted as nuclear previous clarity receipts. await excludes our interpretation

PTC year-to-date the year, impact approximately for XXXX the operations the curve we $XXX EBITDA However, based to of be the believe prices million. could on settled balance of forward the ongoing nuclear and adjusted our

Moving to our longer-term outlook.

upper our for for adjusted communicated end previously guidance to ongoing flow $X.X ranges $X.X cash of our and $X.X billion. XXXX operations operations Notably, to billion $X.X of of ongoing operations before ongoing billion We are adjusted EBITDA billion the adjusted $X.X XXXX. range billion of than introducing $X.X is midpoint EBITDA free guidance higher growth billion

of significant amount forward EBITDA expected price benefit PTC provide current level to currently for from do PTC protection nuclear availability settle at not to adjusted event to in the operations nuclear the we guidance downside of ongoing prices curves is lower. expect any the our the While the XXXX due

amount XXXX, Further, expected auction, delay XXXX hedge margin year meaningful of calendar variability auction the gross although including the For our uncertainty. some current XXXX, of the modification to additional approximately in percentage the increased remains. of associated PJM a parameters generation, create has capacity potential XX%

For be adjusted with billion to we ongoing opportunity meaningfully are for our operations higher. sight midpoint over these reasons, maintaining of potentially $X XXXX outlook our line EBITDA of

allocation quarter Finally, active the and capital third capital period an marked of returns.

highly with we value interest multiple our at shareholders less ownership to of acquisition the announced an and We year-end allow XXX% transaction XX% acquisition of Vision financial minority the from extended flexibility payment than schedule. accretive be Vistra XX, September EBITDA, through an upon minority our implied On to enterprise this will closing investors. believe Xx

addition, in able market million weakness of the were we in quarter In at share. September of we experienced $XXX shares late repurchased per average early the price an and uptick execute price open in to in share the August the an $XX we in quarter. purchase In resulted all, approximately repurchases and third significant approximately in

interest view a an indicative Revision purchase a our roughly of price recent repurchase Vista as payment to the share, to our and we schedule, allocate deferred price. discount XX% to between a average $XX a we with the minority per acquisition, equity program able were share combined $XX with billion repurchase which $X.X share similar XX% approximately at Combined to forward

to Turning Slide X.

strategic Our integral our business priorities remain performance. X key to strong

and hedging into previously have our integrated stated, believe future business visibility increased stakeholders financial our we provide comprehensive we our performance. model program, As

an perspective, to team deliver. From operational continues our

gas and XX% Our fleet. generation team achieved for availability approximately overall coal commercial our of

also continue fleet we our with great make nuclear efforts. integration approximately as averaging to period the progress had XX% capacity factors on for Our quarter outstanding an

to the as the retail Midwest management. outperform team disciplined through performance well the continues strong Northeast customer side, On in margin and both markets as count Texas

objectives goals, budget persistent Finally, business relationships meet our sustainability and of growth segment to seeing longer-term market including customer result as we large solutions through are in certainty. a providing customers'

return executing on in to by a allocation, remain attractive strong Switching significant capital like a and projects growth also while acquisition, disciplined Energy we Harbor capital balance targeting the of our approach sheet. maintaining

in the quarter to of return this place execute of put fourth plan part approach, capital XXXX. the continue we during As

approximately Since we through capital common have allocate share allocation that that capital returned $X.X in more to additional will open available $X.X detail XXXX. see you at through market billion dividends. in stock expect later cover and the repurchases our least time, will an billion year-end of investors we But to Chris presentation.

by current minority of the announced recent share our $X XXXX. This additional billion responsibilities number including for purchase executed expected to authorization of is provision, and interest an repurchases net the capital recently XX% Board year-end be

our strong X.Xx net quarter with the ongoing at remains end the balance EBITDA. of the sheet, financial adjusted debt of third operations position Speaking at approximately

closing with Xx interest Although our is expected net XX% minority move in of fall slightly XXXX. Vision Vistra we the Xx to leverage below expect it purchase, above the back to

transition. Moving to energy

approach of and and disciplined our a attractive to we purchase The reliability, franchise. affordability retail balance strategy this XX% view while As continues minority for you responsibly the returns great interest shareholders. our know, in carbon-free sustainability assets investment our transaction an is as example ensuring Vistra vision as

retail interest addition In the minority repurchasing in business. our best-in-class to

such of across ownership generation Through new megawatts cost by kilowatt. nuclear our M&A. per unit price We approximately of XXX this plant generation additional an $X,XXX build, this increase as average very for we acquisition, other X alternatives per favorably or believe and nuclear compares uprates, our sites at will to approximately

existing will disciplined look pipeline. XXX-megawatt capacity our in Finally, project execution through in we in increase our the acquisition storage result solar to continued of assets an the growth approximately and and business forward this

and on data highlighted year spanning As we Slide numerous and across additions major center by company seen X, industries. have of this manufacturing alone, announcements

spurred These announcements heightened projections awareness growth. of power have and demand

numerous have power updates forecasts across an published Some raised through already observers acceleration demand have demand grid growth country. industry expectations the operators for in their reflecting midyear while

the to the activity calls, the dynamic and oil of We many Basin chip the of first Texas, also the Act data the centers. of drivers Permian and highlighting build-out West facilities, due quarter of including large second CHIPS the reshoring growth, discussed of build-out this load gas demand of our course, growth specifically industrial partially manufacturing power of on of and, electrification in

shown exceeded growth ERCOT XXXX already PJM As long-term low the it weather is growth trending believe towards the the we adjusted in in view loan confirms markets is only but We occurring, across actual and both level of expect chart rates, on levels. left, bar historical that not forecasted and growth continue. for our to

will lot resolve be and focus While multiple relates been agreement, there to on there ISA, to of talent service interconnection FERC's project or amended paths as has similar believe that we other projects. it the issues any a of rejection

about door who refiling FERC ruling FERC commission's generators ISA open the precedent, from of are a streamlined narrowly prevents ISA. seeking a for with Nothing failed the to customers for or the based that needs. us their FERC's contracting co-locate on view to other previous ruling meet was leaving

open path to of approval doable. believe and interconnection is which need we agreements, will issues address the We to find service FERC

one-size-fits-all we've needs there traditional the will more over Q&A, this, will will to have to needs As vary. in these there configuration. we a configurations, in there transmission front discuss capital but be load as of approach that quarter review Kris? just and we meter opportunities or variety do and located next allocation. large generation and be of believe to many our a today. sure be meet Kris to will base customer more We whether a provide This before, turn detailed our outlook will customer I our of a is stated will as shouldn't facility results, that don't the it third broader to of I'm a this

Jim. you, Thank

to Turning Slide X.

third generation we to approximately quarter last and deliver not our as the which able in to estimate XXXX, same from excellent retail was Vistra commercial While operating third teams. results earnings quarter to the opportunities $XXX the added did performance execution solid our by of due and million weather benefit year,

available generation continued lower last well to year, maximize opportunities. extremely to Despite compared prices perform wholesale and our flexible fleet cleared

to Turning retail.

As expected, quarter higher power costs third results to compared XXXX. reflected

XXXX meaningfully margin deliver However, customer count as strong higher and continues to results are year-to-date team to the compared results.

the XXXX approximately generation for generation we our benefited Finally, quarter Harbor, to estimate both retail from approximately million results Energy third and be for retail. of which for million inclusion $XXX and $XX

Slide to Moving XX.

narrowing noted, our XXXX EBITDA As raising operations range $X.X billion guidance to are we $X and adjusted ongoing to billion. Jim

growth before free flow our XXXX to guidance We are $X.XX billion also range and $X.XX raising billion. adjusted to operations ongoing cash narrowing

our increase our high XXXX, guidance the to the primarily is a across is business. retail our of Although related level business performance range this in team at executing in latest

generation The contribute in relates EBITDA $X.X businesses, expected to our in annual Moving to increased expectations adjusted improvement to this for that both retail communicated the and specifically retail, billion is range XXXX. attributable we billion to an of we basis. have previously on as to our it outlook business $X

growth the sustained the the Texas and residential Harbor, Energy of market business demand business large contribution EBITDA years addition the demand in now billion. in country. across to range adjusted several including be expect factors, in several We from $X.X to over to of billion $X.X Due and annual the next this

XXXX, few implies a range tailwinds However, a operations we cash conversion ratio our for range of midpoint approximately indicated XX%. that that are free XX%, our to nature. to retail above to growth, to in comfortably of adjusted XX% Switching target long-term do our ongoing results come the flow in approximately due of range project before previously in onetime guidance

hedging guidance and long-term our comprehensive program. by our remains course, supported Of outlook

and for be calendar Our wholesale of in market taking commercial XX% our to volatility, increasing hedge XX% and year advantage recent team power to balances for year calendar XXXX XXXX. continues approximately approximately opportunistic

allocation capital Slide to XX. Turning on

generated Our per per at by Since an led shares approximately our XX%, November our since an reduced shareholders. approximately increase QX XXXX. dividend program share in this value have significant share XXX for has repurchasing price count reduction in share to shares our the beginning approximately million has XX% we below Notably, $X. program outstanding average our repurchase share XXXX, in

to balance sheet. the Moving

the of Xx our net target end the long-term As below quarter, was ongoing of third of comfortably operations our leverage EBITDA. adjusted

below comfortably Although XXXX. of when minority to above delever the by we and close the that Xx we acquisition XX% ratio interest, expect slightly to Xx quickly move year-end we be expect

by our in sheet conservative BB+ balance upgrade recent remains Importantly, Poor's. of to as way, Standard the capitalized the we manage to business well and corporate continue our and credit evidenced a by rating

growth. Finally, continue deployment be opportunistic, towards disciplined the yet capital to we in of will

and $XXX our to projects pipeline, To Microsoft. on execute in announced XXXX that Amazon XXXX end, approximately expect as including spend we recently we development the solar project and for million

Of pursue expenditures to course, third-party including opportunities loans. nonrecourse to with we will capital, continue those fund

our XXXX. at rate, Slide a least our capital EBITDA operations on continue expectation for on Finishing cash well that guidance of adjusted through to before of current Based ongoing flow our to XXXX we long-term $X project free XX. expected growth as our we year-end conversion and as achieve opportunity billion operations meaningful amount midpoint XXXX targeted ongoing adjusted will generate

excluding to providing our additional power leverage, as earnings We capital improves, reduce also expect net our flexibility. financings materially nonrecourse our

expected to market dividends As $X.X see, current the capital you continues allocation the Vision shareholder through open announced approximately and the $X.X share billion remaining $X allocated purchase, billion interest preferred focus our authorization billion to repurchases authorization over of the XXXX and minority comprised on can through return existing year-end XXXX, today. with share including common Vistra additional plan repurchase under XX%

of this see incremental billion is this still operations available have we However, already amount. for potential despite shareholders, capital ongoing upside capital end $X.X XXXX. amount expect the Because the for for earmarked significant the amount on through EBITDA, we based billion of allocation $X to of adjusted approximately of to

the slide, the common years, including by our to As have over preferred last significant X been issuing buyers previous on jump highlighted repurchase of starting stock, we equity.

growth. However, a stock one we is balance was on maintaining balance resilient sought and return, and to only the an strong allocation decision our opportunistic repurchase of capital sheet to remember aspect our framework, it executing to important capital that

longer We expect allocation this year-end over through XXXX, our also framework decisions, to term. only continue the guide to but capital not

Importantly, inorganic we and our for have remain we the in return disciplined choosing both opportunities thresholds not growth and pursue. changed, organic

the yield, our especially we it the an we for shares and compared companies to flow think is to free when free flow for questions. repurchases average is believe still important open continue yield line With to cash share important priority. elevated to the S&P do allocating operator, that, XXX cash in note I ready at trading capital an we're also see that to

first Guggenheim The Shar question Instructions] with Pourreza from [Operator comes Partners.

actually Shar. on James for It's

the Susquehanna guess ISA maybe of conversations the your some coming I prepared, and past just impacted guess, customer So has I in rejection back how to your the week.

sounds would your you do but more where just to more be little a meter. peers of guess, fall of any like One other kind soup color maybe It maybe and front helpful. the on of co-locations there more those polls? committed focused within sounds colos, I

They Friday. these James, we the these there parties them us the acknowledged our on particular at this. if nothing a XXX% going forward take the pursue quantity talking But in were they're forward deals are on are I do of how an active complicated front sure with is think the of to think work I we're disappointed still we've going precludes that deals do are is from they deal. to through I ISA to. do, have and look last with they and that It's everyone by to co-located at the have this novel. the the time want that other at them the you topic the even issues of multiple some to Then co-located ruling how plans. We of large country on that opportunity would if have they smaller. are large done, We're to that discussions looking that obviously you're types you But this moving were customers acknowledge unique look are because going we've of past, paths that it. mean deals. are even not we vast our we meter. the to majority be of sites standards that

have as answered. we there's need can so We to But to continuing. some nuclear both out. still are We our go details really think paths options, this of our number multiple as into and a with good we of how scale, that more that And build. things are conversations gas still sites sites as are questions new But think well there potentially when be forward. play might the

aggregate. slow I so are is down a the think which load open going to attract we'll of out this? customer the to country this how in parts of out. it's that it able could this areas profile country. huge don't more And different to that comes I down And a Are think is it development and that differently just and have they to economic to in a see opportunity play because load plays base

we we think with it's to Obviously, it the So through of that's work and process. stakeholders just a our And where I need. in and utilities. going the other industry, are, integrated we're peers ISOs as the the vertically any

If of on Okay. could Great. kind And that. touch your just on piggybacking then thoughts maybe additionality. around we

weeks Just PUCT we certain the of members from it. kind heard of recent some for calling in commentary

colo point, thoughts and additionality? just come do Peak at think like some have you would this Maybe I ERCOT there. to general a with guess more So Comanche

Yes. couple to, this So even at without issues for there example, of that that I just in center investment center do mentioned resource have questions general, load. play James, say, think there the in here. whether are adequate signals additional about One there's been data it, data obviously of adequacy right? a load new you regardless price come is Texas the could

In so you chunky X growth like years, over the X load happens to X though talking load probably it the not at attention. in It center data start largest it about load gets so next fact, big source of centers, coming looks just data the the the ERCOT. when will time, a be

or economic those kinds could customers that As see the from megawatts to sites, contracts of contracts, developing the come feasible. of well projects alone with projects gas with announcement our contracts of the Coleto add reforms we've both you know, can market existing as our conversion some those megawatts of put intention make going as ERCOT, X need bring fruition X,XXX bilateral to in those the out to Creek augmentation we're are are come to make still peakers to still that

I discussion because So additional requirements this a is just load solve to think that coming classes are that don't we've you got can a bringing rule customer multiple But with ERCOT. of I become it. do the at customers They're that see tighter the resources to the not that grid want objective we're tighter see to, think either. to they talking looking and

very a we or hope that potentially already we resources And works about compact that in the for confidence that the if Texas to and active bring may want a could supply discussions signal ones even may to any help the create actually that additional addition set actually the So announced. investment is of or we problems. send whether the discussion not that side country in load stakeholders having we've can going what all own to is welcoming the for the are its can part the about load we

And are we've cycles and industry. are People seen invest many to prepared the so there. if in signals this build

this specifically typical load more think we that's focus with this use topic in our it regions critical U.S. intelligence. to our market. main the a just is been than and for and its policymakers. for that the see unique such a I coming And on lead to load of country way. the is a opportunity This for discussions artificial all And I hope

comes Stanley. question Next Morgan David Arcaro with from

Maybe that of territory, got centers a are at approaches just a the of approaches, to a diversity pipeline. centers to that service scale, of given from consider. comments in mean these seeing data data least they're that their bunch your XX We heard on in be over that on little going follow-up bit looking Very yesterday helpful. of Encore there's just I there. maybe gigawatts just

And are that plant -- in too, wondering contract you with And potential you idea? your then as with just elaborate, co-location able in build like might to as if on new interest could maybe data seeing with that, that what the at ERCOT? gas so plants are centers in be just new you build given conversations a are well? partner there Like you

CenterPoint across our these on David, very I'm going their I'm ERCOT working separate types revised it's of on conservative PaaS to that start, ask opportunities of all folks in more country even types hard believe for certainly near robust load extremely because active with to could the Sure. not been has to to start this. for great a we duplication middle load. some able the full exist but question. load bit time yesterday, and have obviously Strategy, within those an conversations. are only Encore long-term in the state, only on a of itself Stacy We've forecasts seeing bring information of Dore, of call through going about basis. to to growth a understand because put comment the ERCOT, still kinds be She's get full-time been looking speed out forecast. they're the this to load It's Head certainly territory, summer, I'd it's

options. positioned think so can probably satisfy part Texas the of part load, that but the exploring I only if for is of I they're all And not the of want demand. demand, be satisfy potential on to as And the think do providing do as country addition to relationship any we it, we that certainly resources. well that,

some color I'd we're conversations with solve and working having of ERCOT that with to provide all how Encore, with like CenterPoint to can Stacy together. we sure make this for on the we're So types

and Jim, Thanks, question, David. the thanks Yes. for

some a are pursue customer, combine having kind with be new of of So portfolio. X at portfolio our that colocation deals the multiple with sites able some multiple where early with We're sites about building generation. deals conversations pursuing we and we also some developers might in currently at to approach even

detailed side. our of with with discussions new building gas early obviously, companies a build some pretty support nuclear to development There's in at And conversations Jim the about But in companies, our project. uprates, handful customer about about of some data new particular we're some X discussions interest, in ongoing We mentioned. have in we plants as large ERCOT. a gas well And have as discussions finally, and hyperscalers we're center several in then in we're a of sites, sites. different -- PJM and nuclear nuclear lot with both of the

including multiple just in a can course, companies to distribution discussions number transmission applicable with of the policymakers conversations So stakeholders forms of take we're multiple sites. those as well around you as these And from see, utilities.

deals before, said for the diligence long commitments these are because to very we've effort power. a As an takes It's time. long-term these purchasing intense process

devoting time whether the and we brings. of and Texas that opportunity, these other because -- lot these excited that this we're Ohio, the so to really a we of in believe are operate Pennsylvania, And interested it's but development the it economic discussions, or that resources we're states jurisdictions are load welcoming about in,

it's a so And multiparty conversation for all projects. of these

just here more sense to staggering under given many makes guess, Peak Comanche I options ask It the to And scale you Peak. consideration. that in Comanche better are becoming so of maybe directly Have it seen terms positioned popped of be that after the thinking Like urgency increased latest be? there? PJM. a deal could here curious challenges would FERC potentially what on your just And has in just timing seeing the up have

David. Thanks, Yes.

even and is the the load advantage interconnection because interest time, ERCOT working we there FERC X together that speed-to-market the the certainly our in of decision, as is So I in as ongoing on it state Texas. TDUs that, -- and some mean has And interconnected ERCOT itself country. location to Comanche have get in discussions Peak been the an for and before prides processes in well of advantage fastest ERCOT on frankly. the

Peak Comanche FERC well. is as ERCOT that fact order an it Friday before came attractive the certainly, FERC the subject to site, the order but has that to jurisdiction was not make the out and So continued last

There's local that to say side, when local conclude is there's of side who we policymakers exactly hard timing, in well. stakeholders done. of the a it's not terms as just TDU ERCOT, discussions that because, a lot be So lot officials work to again, of but could to at Encore, involve on

there's great that for lot that into it's a process to and opportunity, for we're and and and well Vistra customers. pursue opportunity that So conversations have, to a continuing of deep into

with Steve Wolfe Research. question next The comes from Fleishman

peak and the the dare guess at kind one question for emergency resources co-located, kind solutions times see this is has I'll of of on the even sensitive which emphasized like. could if I or more where have Do just of available in topic, availability Texas it's ERCOT ask other you generation you periods?

Yes, do. Steve, we

think, noted, discussions, are in learning they customers We previous have conditions. even of load emergency sort also manage can I during their how

something responding that it's around I configured to a whether and the concerns also around generation some adequacy, they're to could of they're whether receiving they're Again, large customers, or the think response that part that questions showing at the backup So these be it's and be they the want load I solution. think resource site. that of they're

that lot variables complex is So some Stacy's take these they're there's and why again, is, earlier we're discussions point, do time, a of to that managing.

So I some will there's it. there, do think going Steve, become that think I flexibility and with stakeholders comfortable to be multiple help

of thought in, means on just we had the any Okay. but gas -- -- process And coal -- the days X result. on of new then and your fleet? this what also big kind then this obviously election both And for just build I'm it's kind just I for know

through business. Steve, guess DC that the -- that's obviously, and is some new be at potentially point. being challenged, with There's revised units, Yes, prediction the some with GHG and so working you circuit. coal It's but tough, prediction business thoughts we is legally that could of can the election gas. tell And and I'd only that affected this you the not see the already the rule, are -- policy that I also administration,

policy-wise out, that the some And the and difficult investors see for least and look it's thing at to so cadence, and assets all play administration more appear plays take out, changes, to and be topic do. open still a also look XX-, just that hard XX-year adequacy That's getting that. a in see resource to at this of time could the on we'll to that but X-year Mamet,at at that through to have changes happen back does to that that's something how But -- concept.

of our that we're about about company. is something the think pretty is a One a things I like diversified talk and don't we I lot business model, this

jurisdictions, all growing different is diversity generation, we decline obviously, nuclear continuing fleet that's have We and of broad the a solar then but technology across U.S., have major and business The coal it's gas-fired part largest our competitive geographic a markets. a but business. markets diversity. and to in battery

So a of line of technologies business. and in we have in lot diversity

and the to to You the heard be complementary business. is business large And retail tends growing. that generation today,

really us changes, flexible will it's I second as that that demonstrated to the order look market of and first policy at and a effects presents So we're we've execute company opportunities and potential that think it. take hard on but

wouldn't to but as this So the competitive normal in this of been adapt. -- is a for course market has I is lot history say having I this view our Vistra,

so are and It's of call. get we'll big open some part opportunities, you've life the but some obviously technologies to see And that to early those we too have extended if a if portfolio, that to mentioned. of our

And last Okay. one then quick one.

Is added You any above the helpful. Is meaningfully be event ERCOT meaningfully like billion. were did don't kind means to know if it just what -- about PJM I the the price XXXX any it define you auction give of color the more in the you just the that that potentially of in mention event $X the to care the for pricing? main and Just auction, that color more driver? would there last where really that? is could or

up I'm to you Good take that going would pick be this one. Steve, matter, and We one words that know on. let Kris question.

So Kris?

those a think Steve, it's I Yes, of things. combination

a at our plus hedged. that even good area. look we're XX% at look and XXXX making we're only XXXX hedged It's But X% there's it, there. our in We're range around that. obviously, as minus progress we're think, you or if -- you I XX% guidance, around guidance,

can you XX% imagine PJM the So hedged, And that to a see and XXXX, auction, an out as you around is area. our also little wider. that's bit mentioned we that we range look

it's billion. we So prudent $X think still say to

I against think going if as where bit we came potentially the little the time us. some those hedge against a in have last auction and comes we built where we things protection it more, in in

the of upside think to we more built So upper you could that end, and little not results if a we we to see where going imagine in. -- as that the we've see we're some going upside. see as that bit things come we're not those hedge in you auction but I state to can And

The next Tonet from with JPMorgan. comes Jeremy question

mentioned guess, just I I up, you there. footprint on wanted diversified as pick the to

how of in particularly ruling early favor more think point like wondering Town set ERCOT it's in to but the days, versus at do the opportunity at this PJM light things ISA the of kind starting Just margin? about granted time, this see you ERCOT you

to send again, that exist market but price I a where and investment, I that so, dimension, the whether design capacity capacity, grid are new X to on not market retire that in encourage signal growth or ISA does assets PJM market a forecasting don't now that it's market. real discussion, capacity Jeremy. some that's something is a to think is creates think is and opportunity Texas. construct the the energy-only something that's load not meeting from a assets PJM bring that obviously And an in The

a clears have might but in volatile weaker has XXXX, And of bit XXXX. you been terms so a summer really in strong in had we've it more

you summer return were felt to in about if you're of if putting might going you heading batteries the XXXX. those 'XX, you're a on into probably grid get on the it wondering have good batteries, right now really So whereas

the that ERCOT wanting the for run comes be So in growth earlier, a load There'd about market. the being investment of I I clear now, PJM, like capacity has that's would of of meter low. of now of basis, valuing coming PJM. more meter, should signal It's that Texas request send the delay. important load capacity But of price a did right X heels these led be the at front was signaling on need auction market for load opportunities forward Again, or markets a way If for then come, opportunities them. dimension. July, and a this it it's is these case a PJM there And but the behind in consistently to to note does signaling both there. intervention stated their structured the curve would capacity if that signals think in ISA X-month the is as to into end the it's for only a load whether the

you capacity pricing But in Do the is maybe evolving time? of that on future that how coming auction the Understood see there. do power back kind really curves, that there? to do reflected Or demand you think it. Got over how PJM evolving? see you

And as being of in load going for the that We say the the and not Steve of wires of to this put as view is our that. in more Yes. that but I all XXXX. fundamental of growth want on chime to coming of well we our some load of what like think folks seeing would And at out this actually recency feels our growth get we would in growth. massive would And by the questions, put all in we're And summer a comments gen not noted curves. there's to the that forecasts curves we're as this sort forecasted that more That fruition. growth. also in coming business of see Head companies. that of to on load add it curves of that try lot we're a is weighing the think have of would But presentation, can are seeing there's are Wholesale Steve, just reflect the curve I ISO where I to say, do in earlier in Muscato, here, to this some point to some you the point. me to it are relative this load curves at and there, this feels points to data me factoring to I

Sure, Jim.

call models. X% -- or gigawatts data. what historical And the their are It of they're between putting I of last in think growth forward years over X to I how think extrapolating someone load study X% gets ENCORE from mentioned I that people X of to the XX with peaks. I'll think down the really much

actually I XXXX, seen And beyond we've historical power before. activity. So the trends that will lot And out is not it's of Unfortunately, there's hard until bias. a be some may liquid only see how to we recency XXXX, and that, much exceed in? of gets that also do there's think

Then market, the now. the Right I they're be more right the very the earlier, Texas recent cannibalizing so focus so figure see continue revenue necessarily there's come when in winter even summer. you which in large because the hours little a of that's in into ancillary batteries as try bit to I revenue, the to put think in if their you mix with that or we -- And streams. winter X think there's summer they're kind in premium I weighed future on have both a Traders and batteries not is arbitrage. this handle, a because because the X that to services more saw, clears also of And what them, source seen on I we've of is the many think, in which mentioned think duration. market pricing primary going can event Jim, not asymmetry in the do And in winter X of challenged you'll under they're out people just there's you areas now,

into scarcity curves forward. I some winter think the you going come more may see

X was number canceled of And Steve. than in I'd where new for the that into Jeremy, thank we've seen This the And and add, moved queue solar month to and other storage first additions dimensions. like were the projects you, wind just less status. for the or inactive actually

do way over have of I economics. think time, rationalizing markets a So

is was TAF. the that's The the to Fund. even handicap is think to sort and curves only? generation and I'm the the the generation of an to larger of to a interest weighed TAF how out May something look attractive continuing curves that signal going figure in keep markets at of going Energy looked 'XX other send think discussions Texas time I test online. the incentive new are for think I very quantity frame. I'm a only that test TAF, That on And the is having existing Or saying the that thing or I sorry, struggling be to

too do going out, And there's still think, to we're diligence state to that process, call. think on trying stages to for the early lot assets going in if to to test bring to send and a they're figure are of a the still year. try is what out to going think sort early signal And folks the we're session to enter legislative to so I they're a going I And quantity still qualifying market let increase that next with the TEF or actually if due because investment. I price that's

in last with kind to update question it. there, regards project your TEF my overall I That the Got here could of was considerations there. activities your with That's ERCOT, to that on getting just thought development tough helpful us said especially guess, you process? you and just,

application. each was peakers party X part submit project. selected, did selected We Yes. for Sure. of Basically, the as was X TEF that

selected. X peakers So our X was of

resources market to the has standard requirement reliability May since linked development continued when a developed. the if We below are a a to at there actual the mechanism concerns has at is was in to around from our market, been on been but hard we now we standard then, capped PCM reliability see a The we reliability to the fall or market periodic procure is It's mechanism a design to As made and $X want not a -- be studied in cap. have stay not announcement basis. will billion. designed linked reserve standpoint and stated performance we least make additional net credit It progress.

dedicated in legislative are about discussions a a there So potentially could overall of even some presumably, And performance the resources being lower to credit being session. mechanism. that that mean quantity challenged

we're that services think market need incentivize off peakers we we we'd could with don't need. for need move reserve some the make I into bearish come out as Texas. for all to growth. also is forward. ancillary case peakers in And work yet because so still the also those load to we industry developments in yet. to to like Real-time meet we're bring that do got be the there as not that meet that we've the speaks have resources on do partners. how to projects And if designed to And energy the And site we got for that can economic an occur. to on not as our flight that's We've reliability think well to to the we of in the continuing peakers, I figured is the state both think service continue and I be figured have out. [indiscernible] hope ramps that our but the But that's as that all formation. like to working to we've team The we see And those decisions. still don't co-optimization ancillaries we that are price So well key efforts

Storozynski Angie with Stevport. from comes question Next

maybe 'XX. So first on even 'XX, maybe

outer or if years? So especially by impact 'XX, colocations PPAs? EBITDA 'XX, any if your to that just meaningful from in wondering then, data deals, changes be baseload And also, those the virtual it have would by you way those hedging expect units you're center

the being chips in the to become as servers and installed. building processes become and it's then obviously ground And tough after you resources, site be to simply done it Yes, of you front need the thank for meaningful I on 'XX, that's have say study Angie, end. 'XX available see the question. would physics out on what to the powering because the

amount a could you process line be And putting power co-located you're a in X- facility. these, of so X-year a before for meaningful to the time to

the really time did, of XXXX, than pretty think more I term about we're this it in, more how near we're more in XXXX, in 'XX. not layering wise, it start still line thinking And -- affecting it's hedging obviously, So open, XXXX. the if we'd a sort

for a that I the opportunity that horizon a or from hope our the guidance power. hedging terms would perspective earnings be to in direction we from to perspective, market not layering we've in in, So here of but been that it's there talking say is our about

OpEx. changing then And Okay.

nuclear obviously, lot discussion, So of interest in a in your plants.

and as discussions You it you as again, gas the or plants. assets? centers. have sense with gas prices compare the attributes Is the even assets us directionally, just give just a the many for more data simple have that versus pricing carbon-free just differential how Can these directionally nuclear about you

of would asset to including a in for Yes. their So more less not differences Thank in might as you, this There's go say there this to needs that willingness of different customers I for will class. prefer ideal aren't But what valuable that really that calls, things pricing by Angie. variables we they share preferences. are seeking I are look I've and list right? mentioned are say previous or at play and of of locations. be there's that are is speed able how location equation all other going would sorts the that and cooling, circumstances, land customer energy going to a to into and into more to pay kind variables and certain water under

a gas to we're I with of co-location able being these the encouraged directly the partners hyperscalers premium attributes And I -- that parties, I same flexibility the gas about. aren't that work but would assets think I assets openness of XX/X attractive number nuclear. carbon would of wrong, X because to is for But themselves. expect be have there is of nuclear an to could so the And not the as including expect not

think the leave but I I'd it So Angie, I thinking like think about that's to it. way at we're that,

assets, around capacity one, last especially know promised about just I But your could Valley. you Eric, And I transmission comment Beaver especially the then X the question. PGM

a around example, of to you to for front it? the PPA deal in have upgrades? wait were Or that asset, be like of for in the meter a transmission do if need is overbuilt So sort for for virtual there

Stacy processes be co-located. there whole it's I or particular and PJM. it's to it done where capacity think the be is some the system of are with Yes, if faster study don't load and to load views, sit is view as I'll think not, slower going X I to adding And her fun still there be it's of if is I'll congestion necessarily going slower is to in system. we to point but to about capacity do we Angie, probably going on still a have, we or versus to in region because if meter and there perceived in be end studying up going connect available that? And from think of doing a the locations to Again, a balanced for you'd we start, may add view locations the area need country. that's area both there to the ask we the that pretty anything transmission I in spot what efforts even like what we Stacy, to work. There's

add that agreement. the without Breville, be do just been impact we could already co-located load at It's would there negative study a grid. have to a that necessary I studied

the with And and it the so are colocation benefit customers pursuing it's I speed agree of Jim reason is for to that market.

than the as we with referencing front discussions do those said, of front-of-the-meter front that, there meter. as again what faster can Having Jim connections those it as well. extent So will we that of connection, we're of to customers all be having serve said be earlier, customers the plenty well. the certainly meter And will and with discussions their those open for of to some

conference Jim to our closing over concludes turn Burke session. back the for remarks. any to like I This would question-and-answer

we're the We rest appreciate having soon. in your a want We day. interest for Yes. dynamic of you. service to is certainly today. very delivering. team execution can in thank . and Thank continued just a their I Have and in Thank we this And your hope assure customers you see on our I Vistra, focused you team joining our person great for time. appreciate to communities. to you call us and

for conference presentation. attending now today's The has concluded. Thank you

disconnect. You now may