2. Vistra Corp. (NYSE:VST)
Number of Hedge Fund Holders: 92
Vistra Corp. (NYSE:VST) operates as an electricity retail and power generation company. It provides electricity and natural gas services to residential, commercial, and industrial clients.
The company’s operations include a wide range of activities, including electricity generation, wholesale energy trading, commodity risk management, fuel production, and logistics management.
With a generation capacity of about 41,000 megawatts, it serves around 5 million customers through a diverse portfolio that includes natural gas, nuclear, coal, solar, and battery energy storage facilities. During his episode of Mad Money, Cramer said:
“We’ve seen this insatiable demand for clean energy for data centers and the hyperscalers that use them.”
Technology companies are seeking dependable energy sources that also align with climate commitments. The recent agreement between Constellation Energy and Microsoft to revive the Three Mile Island nuclear plant exemplifies this trend.
Good news for the company came in July. Vistra (NYSE:VST) received crucial regulatory approval to extend the operational lifespan of the Comanche Peak Nuclear Power Plant, allowing it to function until 2053, which adds an additional two decades to its initial licenses.
The facility comprises of two units and has a total capacity of 2,400 megawatts. Since its inception in 1990, Comanche Peak has successfully generated over 582 million megawatt-hours of clean, emission-free electricity.
Cramer went on to talk about the performance of the stock and said:
“Vistra was up 37.9% for the quarter. It’s now up 218% for the year, hard to imagine a boring old utility making that kind of move but carbon-free electricity has become one of the hottest commodities out there.”
Moreover, in 2024, Vistra (NYSE:VST) completed its acquisition of Energy Harbor, expanding its customer base by an additional 1 million retail clients. The transaction also contributed 4,000 megawatts of nuclear generation capacity to its portfolio, complementing the existing 36,702 megawatts at the end of 2023, which includes 2,400 megawatts from nuclear sources.
Fidelity Growth Strategies Fund stated the following regarding Vistra Corp. (NYSE:VST) in its Q2 2024 investor letter:
“An overweight stake in utility company Vistra Corp. (NYSE:VST) (+24%) was the top individual relative contributor. In Q1, the Texas-based independent power producer completed its acquisition of Ohio-based nuclear fleet operator Energy Harbor. The new Vistra, with its expanded geographic footprint, is in strong position to gain from the buildout of AI-capable data centers, which require enormous amounts of power to run. It is expected that local grids in the U.S. will need to invest heavily over the coming years to improve their power infrastructure and meet growing demand. In the nearer term, firms may choose to contract with independent power producers, like Vistra, rather than rely on the local provider.”
