On Oct. 5, the U.S. Department of Energy's Office of Energy Dominance Financing announced a conditional loan commitment of up to $4.2 billion for Vistra to add power capacity without building new plants or reactors. The funding will support nuclear uprates and modernization at three PJM plants, Beaver Valley in Pennsylvania and Davis-Besse and Perry in Ohio, adding 433 MW of clean baseload capacity, extending operations by 20 years, and preserving nearly 4 gigawatts of generation that serves more than 3 million homes. Vistra stock is down 23% over the past year and 27% from its all-time high of nearly $220 per share set last year, and trades at about 18.5 times earnings versus roughly 25 times previously. The article projects earnings to grow 18% in each of the next two years and argues the dip creates a buying opportunity, while noting the risk of regulators imposing price caps or other market interventions.
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