Vistra Energy Cautiously Ups Capital Spending in 2017 as Natural Gas Prices Recover

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Researched by Industrial Info Resources (Sugar Land, Texas)--Vistra Energy Corporation (Dallas, Texas), the parent company of TXU Energy and Luminant Holdings Company LLC, enjoyed its first full calendar quarter as a standalone player as recovering energy prices gave it reason for hope. Industrial Info is tracking $4.29 billion in active projects involving Luminant, Vistra's power-generation subsidiary, which caters to the growing natural gas market along the U.S. Gulf Coast.

Vistra comprises the power-generation (Luminant) and retail electricity distribution (TXU Energy) assets that used to belong to Energy Future Holdings Corporation (EFH), which filed for bankruptcy in 2014 amid crashing commodity prices. (EFH's third major component, a transmission business, likely will be sold to NextEra Energy (NYSE:NEE) in the near future.) Called TCEH Corporation after it emerged from a financial restructuring process in October 2016, made possible by a tax-free spinoff, it was renamed Vistra in November. TXU Energy is the largest electric retailer in Texas.

Vistra's capital expenditures for 2017 are estimated to be $285 million, all of which is attributed to Luminant; this is only a small increase from last year, when TCEH/Vistra reported $278 million in capital spending. Only a handful of Luminant projects tracked by Industrial Info could kick off in the next two or three years.

Luminant is in the site-preparation stage for the $460 million addition of two units at the DeCordova Power Station in Granbury, Texas. The company plans to add two General Electric (NYSE:GE) natural gas-fired, simple-cycle combustion turbine generators, each with a capacity of 230 megawatts (MW). Construction is expected to begin in the summer of 2018. For more details, including contact information, see Industrial Info's project report.

Luminant also is seeking permits for the $530 million addition of a steam turbine generator and two heat-recovery steam turbines at DeCordova, which would add a further 298 MW, as currently designed. If approved, the project could begin construction in mid-2018. For more information, see Industrial Info's project report.

Luminant's other capital projects remain in the planning and permitting phases, where plenty of factors could continue to delay--or outright cancel--any construction. The largest is the proposed, $694 million Eagle Mountain Power Station in Fort Worth, Texas. Luminant plans to build a combined-cycle unit at the currently closed station, comprising a pair of combustion turbine generators, each with a capacity of 216 MW, with a heat-recovery steam generator, attached to a 298-MW steam turbine generator. For more information, see Industrial Info's project report.

"2016 was a highly productive year for Vistra Energy, as we delivered very strong results under difficult market conditions," said Curt Morgan, the chief executive officer of Vistra Energy, in a press release. "As we move forward into 2017, we are focused on finalizing the process to list on the New York Stock Exchange; improving our plant performance, including portfolio optimization; and implementing our capital allocation process, all with an eye toward delivering value to our shareholders."

Industrial Info also is tracking $149 million in planned maintenance projects at Vistra's facilities over the next two years, including Luminant's Comanche Peak Nuclear Generating Station in Glen Rose, Texas.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.