Vistra Corp.

1. BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES

Description of Business

References in this report to "we," "our," "us" and "the Company" are to Vistra and/or its subsidiaries, as apparent in the context. See Glossary of Terms and Abbreviations for defined terms.

Vistra is a holding company operating an integrated retail and electric power generation business primarily in markets throughout the U.S. Through our subsidiaries, we are engaged in competitive energy market activities including electricity generation, wholesale energy sales and purchases, commodity risk management, and retail sales of electricity and natural gas to end users.

Vistra hasfive reportable segments: (i) Retail, (ii) Texas, (iii) East, (iv) West, and (v) Asset Closure. See Note 19 for additional information.

Significant Accounting Policies

Basis of Presentation

The condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and on the same basis as the audited financial statements included in our 2025 Form 10-K. All intercompany items and transactions have been eliminated in consolidation. The condensed consolidated financial information herein reflects all adjustments which are, in the opinion of management, necessary to fairly state the results for the interim periods presented. Certain prior period amounts have been reclassified to conform with the current year presentation.

Use of Estimates

Preparation of financial statements requires estimates and assumptions about future events that affect the reporting of assets and liabilities as of the balance sheet dates and the reported amounts of revenue and expense, including fair value measurements, estimates of expected obligations, judgments related to the potential timing of events, and other estimates. In the event that estimates and/or assumptions prove to be different from actual amounts, adjustments are made in subsequent periods to reflect more current information.

Comprehensive Income

Comprehensive income approximates net income for all periods presented.

New Accounting Standards

Environmental Credits

In May 2026, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2026-02 (ASU 2026-02), Environmental Credits and Environmental Credit Obligations, which establishes new recognition, measurement, presentation, and disclosure requirements for environmental credits and related compliance obligations. ASU 2026-02 is effective for annual periods beginning after December 15, 2027, including interim periods within those fiscal years on a retrospective basis. Early adoption is permitted. We are currently evaluating the impact this ASU will have on the consolidated financial statements and related disclosures.

Expense Disaggregation Disclosures

In November 2024, the FASB issued ASU No. 2024-03 (ASU 2024-03), Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, to improve disclosures by providing additional information about certain expenses in the notes to financial statements in interim and annual reporting periods. Among other provisions, the new standard requires disclosure of disaggregated amounts for expenses such as employee compensation, depreciation, and intangible asset amortization included in each expense caption presented on the face of the income statement. ASU 2024-03 is effective for annual periods beginning after December 15, 2026 and interim periods within annual reporting periods beginning after December 15, 2027 and can be applied prospectively or retrospectively. Early adoption is permitted. We are currently evaluating the impact this ASU will have on the consolidated financial statements and related disclosures.

Recent Developments

On October 30, 2026, Vistra acquired Cogentrix Energy (Cogentrix and, such acquisition, the Cogentrix Acquisition). The Cogentrix Acquisition resulted in the addition of 10 modern natural gas generation facilities totaling approximately 5,500 MW of capacity. See Note 2 for additional information.

BCOP Project-level Credit Facilities

On October 30, 2026, $297 million of construction loans due in December 2026 converted to a term loan maturing in December 2029. See Note 12 for additional information.

Share Repurchase Program

On October 29, 2026, the Board authorized an incremental amount of $1.5 billion for repurchases under the share repurchase program.

Interest Rate Swaps

On October 26, 2026, Vistra Operations entered into $1.0 billion notional amount of interest rate swaps to reduce our interest rate exposure on $1.0 billion of expected future fixed rate debt issuances. The interest rate swaps are effective on January 31, 2027 and expire on January 31, 2037. See Note 13 for additional information.

Redemption of Series A and Series B Preferred Stock

On October 15, 2026, the Company redeemed all of the Series A Preferred Stock upon its five-year reset date using proceeds from the issuance of junior subordinated notes in September 2026 (see Note 12 for additional information) together with cash on hand. The Company has also issued notice to the Series B Preferred Stock holders for the redemption of all the Series B Preferred Stock on December 15, 2026.

On October 8, 2026, Vistra Operations completed the sale of our Casco Bay, Beaver Falls, and Syracuse natural gas generation facilities comprising 754 MW of capacity in ISO-NE and NYISO (see Note 2 for additional information).