Vistra Corp

Results of Operations

Net income increased $1.32 billion to Net income of $2.812 billion for the year ended December 31, 2024 compared to the year ended December 31, 2023. For additional information see the following discussion of our results of operations.

EBITDA and Adjusted EBITDA

In analyzing and planning for our business, we supplement our use of GAAP financial measures with non-GAAP financial measures, including EBITDA and Adjusted EBITDA as performance measures. These non-GAAP financial measures reflect an additional way of viewing aspects of our business that, when viewed (i) with our GAAP results and (ii) the accompanying reconciliations to corresponding GAAP financial measures may provide a more complete understanding of factors and trends affecting our business. Because EBITDA and Adjusted EBITDA are financial measures that management uses to allocate resources, determine our ability to fund capital expenditures, assess performance against our peers, and evaluate overall financial performance, we believe they provide useful information for investors.

These non-GAAP financial measures should not be relied upon to the exclusion of GAAP financial measures and are, by definition, an incomplete understanding of Vistra and must be considered in conjunction with GAAP measures. In addition, non-GAAP financial measures are not standardized; therefore, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. We strongly encourage investors to review the consolidated financial statements and publicly filed reports in their entirety and not rely on any single financial measure.

When EBITDA or Adjusted EBITDA is discussed in reference to performance on a consolidated basis, the most directly comparable GAAP financial measure to EBITDA and Adjusted EBITDA is Net income (loss).

Vistra Consolidated Financial Results — Year Ended December 31, 2024 Compared to Year Ended December 31, 2023

The following table presents Net income (loss), EBITDA and Adjusted EBITDA for the year ended December 31, 2024:

(a)Includes $53 million of unrealized mark-to-market net gains on interest rate swaps.

(b)Includes nuclear fuel amortization of $105 million and $282 million, respectively, in the Texas and East segments.

(c)Includes $10 million gain recognized on the repurchase of TRA Rights in the year ended December 31, 2024.

(d)Represents net of all NDT (income) loss of the PJM nuclear facilities, ARO accretion expense for operating assets and ARO remeasurement impacts for operating assets.

For the year ended December 31, 2024, the Texas and East segments include nuclear PTC revenue estimates of $281 million and $264 million, respectively. See Note 4 to the Financial Statements for additional information.

The following table presents Net income (loss), EBITDA, and Adjusted EBITDA for the year ended December 31, 2023:

(a)Includes $36 million of unrealized mark-to-market net losses on interest rate swaps.

(b)Includes nuclear fuel amortization of $91 million in the Texas segment.

(c)Includes $29 million gain recognized on the repurchase of TRA Rights in December 2023.

(d)Represents estimate of anticipated market participant defaults or settlements on initial PJM capacity performance penalties due to extreme magnitude of penalties associated with Winter Storm Elliott.

(e)Adjusted EBITDA impacts of Winter Storm Uri reflects the application of bill credits to large commercial and industrial customers that curtailed their usage during Winter Storm Uri and a reduction in the allocation of ERCOT default uplift charges which were expected to be paid over several decades under protocols existing at the time of the storm.

GAAP net income increased $1.32 billion to net income of $2.812 billion in the year ended December 31, 2024 compared to the year ended December 31, 2023. The primary drivers for the increase in GAAP net income include:

Favorable impacts:

•An increase of $665 million in unrealized mark-to-market gains on derivative positions due to power and natural gas forward market curves moving down more significantly in Texas relative to our hedge positions in the year ended December 31, 2024 as compared to the year ended December 31, 2023. See further information on our derivative results in Energy-Related Commodity Contracts and Mark-to-Market Activities below.

•Addition of Energy Harbor in March 2024 with results reflected in the East and Retail segments.

•An increase of $545 million in PTC revenues due to the nuclear PTC established by the IRA including $281 million and $264 million recognized in Texas and East, respectively. See Note 4 for additional information.

•An increase in retail income driven by an increase in customer counts and higher margins.

•Expiration of legacy Vistra default service contracts in the East segment which resulted in higher-than-expected migration of customers at rates below prevailing wholesale market prices in the year ended December 31, 2023.

•A decrease of approximately $160 million of accretion and remeasurement expenses associated with the TRA obligation driven by the acquisition of substantially all TRA rights between December 2023 and February 2024.

Unfavorable impacts:

•Increase in depreciation and amortization expense driven by addition of assets acquired from Energy Harbor and reflected in East.

•Increase in interest expense driven by higher average borrowings and unrealized mark to market losses on interest rate swaps.

•Increase in selling, general, and administrative expenses in Retail segment and Corp. and Other driven primarily by the addition of Energy Harbor.

•Increase in income tax expense driven by higher income.

(a)Reflects cooling degree or heating degree days for the region based on Weather Services International (WSI) data. A degree day compares the average of the hourly outdoor temperatures during each day to a 65° Fahrenheit base temperature.

(a)Reflects the average around-the-clock settled prices for the periods presented and does not necessarily reflect prices we realized.

(b)Reflects the average around-the-clock settled prices for the periods presented and does not reflect costs incurred by us.

Adjusted EBITDA for the year ended December 31, 2024 compared to the year ended December 31, 2023 increased by $1.438 billion. The primary drivers for the increase include:

(a) Includes amounts associated with operations acquired in the Energy Harbor Merger beginning March 1, 2024.

(b)See Energy-Related Commodity Contracts and Mark-to-Market Activities below for analysis of hedging strategy.

Asset Closure Segment— Year Ended December 31, 2024 Compared to Year Ended December 31, 2023

GAAP and Adjusted EBITDA results for the year ended December 31, 2024 are unfavorable compared to the year ended December 31, 2023 primarily due to other income of $89 million from the gain on sale of property in Freestone County, Texas in 2023.

Energy-Related Commodity Contracts and Mark-to-Market Activities

We entered the 2023 and 2024 calendar years with more than 99% of our expected generation volumes hedged. While settled power prices in 2024 are lower than historical averages, the strategic hedging allowed us to lock in margins above what we would have been able to realize if unhedged and are higher than the margins from hedging for the year ended December 31, 2023, which is driving the increase in realized revenue net of fuel in the generation segments along with the addition of Energy Harbor. The forward power sales are also the drivers of the changes in unrealized gains/losses on hedging activities. As power prices increase/decrease in comparison to what our generation segments have sold forward, the generation segments recognize unrealized losses/gains. The retail segment procures power from the generation segments to serve future load obligations and thus changes in forward power prices have an inverse effect on unrealized mark to market for the retail segment as compared to the generation segments. In 2024, we saw a decrease in forward power prices in all our generation segments compared to our hedged positions which drove material unrealized gains in those segments, partially offset by unrealized losses in our retail segment. In 2023, the non-Texas generation segments also experienced a decrease in forward power prices compared to our hedged positions, which resulted in unrealized gains in those segments partially offset by unrealized losses in our retail segment. In the Texas segment, forward power prices materially increased in the year ended December 31, 2023, which resulted in unrealized losses partially offset by unrealized gains in the Retail segment.

The table below summarizes the changes in commodity contract assets and liabilities for the years ended December 31, 2024 and 2023. The net change in these assets and liabilities, excluding "other activity" as described below, reflects $1.155 billion and $490 million in unrealized net gains for the years ended December 31, 2024 and 2023, respectively, arising from mark-to-market accounting for positions in the commodity contract portfolio.

(a)Represents reversals of previously recognized unrealized gains and losses upon settlement/termination (offsets realized gains/(losses) recognized in the settlement period). Excludes changes in fair value in the month the position settled as well as amounts related to positions entered into, and settled, in the same month.

(b)Represents unrealized net gains/(losses) recognized, reflecting the effect of changes in fair value. Excludes changes in fair value in the month the position settled as well as amounts related to positions entered into, and settled, in the same month.

(c)Includes fair value of commodity contracts acquired in the Energy Harbor Merger (see Note 2 to the Financial Statements).

(d)Primarily represents changes in fair value of positions due to receipt or payment of cash not reflected in unrealized gains or losses. Amounts are generally related to premiums related to options purchased or sold as well as certain margin deposits classified as settlement for certain transactions executed on the CME.

The following maturity table presents the net commodity contract liability arising from recognition of fair values as of December 31, 2024, scheduled by the source of fair value and contractual settlement dates of the underlying positions.

We have engaged in natural gas hedging activities to mitigate the risk of higher or lower wholesale electricity prices that have corresponded to increases or declines in natural gas prices. When natural gas prices are elevated or depressed, we continue to seek opportunities to manage our wholesale power price exposure through hedging activities, including forward wholesale and retail electricity sales.

Estimated hedging levels for generation volumes in our Texas, East and West segments as of December 31, 2024 were as follows: