VST - Third Point - Vistra: In A Pole Position To Capitalize On Trends

2024-05-02 08:55:00 ET

Summary

• Vistra operates in deregulated markets where they generate and sell electricity at market prices.
• In response to this challenging environment, we believe Vistra’s capital allocation strategy has been brilliant.
• The market has started to focus on two trends that we think will have profoundly positive impacts on Vistra’s future value.
• Vistra is in the pole position to capitalize on these trends, and we expect the discount applied to their assets to continue to narrow.

The following segment was excerpted from this fund letter.

Vistra ( VST )

Vistra is one of the largest independent power producers (“IPPs”) and retail electricity providers in the country. In 2023, Vistra’s natural gas, nuclear and coal plants generated over 20% of electricity consumed in Texas....

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