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.

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 2024 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.

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 estimates and/or assumptions prove to be different from actual amounts, adjustments are made in subsequent periods to reflect more current information.

In December 2023, the FASB issued Accounting Standards Update (ASU) No. 2023-09 (ASU 2023-09), Income Taxes (Topic 740): Improvements to Income Tax Disclosures to enhance the transparency and decision usefulness of income tax disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 on a prospective basis. Early adoption is permitted. The amendments only apply to income tax disclosures and we do not expect adoption to have a material impact on our consolidated financial statements.

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.

On January 16, 2025, we detected a fire at our Moss Landing 300 MW energy storage facility at the Moss Landing Power Plant site (the Moss Landing Incident) that resulted in ceasing operations at all facilities at the Moss Landing complex until the fire was contained. No injuries occurred due to the fire or the Company's response. The Moss Landing complex includes two other battery facilities and a gas plant. The gas plant returned to service in February 2025, but the two other battery facilities remain offline as we continue to investigate the cause of the fire. We expect the Moss Landing 350 MW battery to return to service in late 2025 or early 2026. There is less certainty about the return to service regarding the Moss Landing 100 MW battery. We will know more after the investigation of the cause of the Moss Landing Incident is complete. As of September 30, 2025, the net book value of the Moss Landing 100 facility was approximately $165 million.

As a result of the damage caused by the Moss Landing Incident, during the three months ended March 31, 2025, we wrote-off the net book value of Moss Landing 300 of approximately $400 million to depreciation expense and moved the asset to the Asset Closure segment as we have no plans to return the Moss Landing 300 facility to operations (see Notes 6 and 16 for additional information).

In July 2025, we entered into an Administrative Settlement Agreement and Order on Consent (ASAOC) with the EPA related to the Moss Landing 300 site. Under the ASAOC, we are required to perform specific battery removal and remediation activities, including battery removal and disposal, building demolition, and air and water monitoring. We estimate the total cost of these activities to be approximately $110 million. We have incurred expenses of approximately $29 million on ASAOC activities through September 30, 2025. As of September 30, 2025, our accrual for estimated future costs for the ASAOC activities is approximately $81 million, of which, $68 million is reflected in other current liabilities and $13 million is reflected in other noncurrent liabilities and deferred credits in the condensed consolidated balance sheets. This estimate assumes the ASAOC activities will be completed by the end of 2026. Aside from battery removal and disposal, our estimate does not reflect costs associated with removal of other hazardous waste that could be identified as the demolition progresses as we are unable to estimate such costs until sampling of waste material is complete. We will account for any adjustments to the accrual as a change in estimate in the period new information becomes available.

We have filed insurance claims against applicable insurance policies with combined business interruption and property loss limits of $500 million, net of deductibles. As of March 31, 2025, the insurance receivable asset related to expenses we believe are probable of recovery from property damage insurance was $425 million, recorded as offsets to the expenses incurred in other noncurrent assets in the condensed consolidated balance sheets. See Insurance Recoveries for additional information.

On November 27, 2024, we experienced a fire at Unit 1 of our Martin Lake facility in ERCOT (the Martin Lake Incident), an 815 MW unit. We wrote-off the unit's net book value of less than $1 million to depreciation expense in December 2024. We expect the unit to return to service in late 2025 or early 2026. We estimate total cash capital expenditures required to restore the unit to service will be approximately $355 million, of which approximately $155 million in cash capital expenditures have been incurred as of September 30, 2025.

We expect to recover a majority of the expenditures associated with the Martin Lake Incident through property damage insurance and to receive additional business interruption proceeds. During the nine months ended September 30, 2025, we recognized property damage insurance recoveries of $104 million, of which $24 million was recorded as an offset to operating costs incurred to restore the unit to service, and $80 million was recorded as a gain in other income, net in the condensed consolidated statements of operations. See Insurance Recoveries for additional information.


	Three Months Ended September 30, 2025						Nine Months Ended September 30, 2025
	Moss Landing Incident		Martin Lake Incident		Total		Moss Landing Incident		Martin Lake Incident		Total
	(in millions)
Write-off of net book value of facility to depreciation and amortization	$	—	$	—	$	—	$	400	$	—	$	400
Operating costs incurred to restore Martin Lake to service	—		4		4		—		24		24
Incurred and estimated cost of ASAOC activities to operating costs (a)	—		—		—		102		—		102
Total incident expense	$	—	$	4	$	4	$	502	$	24	$	526

Property damage insurance receivable as of the beginning of the period (b)	$	304	$	20	$	324	$	—	$	—	$	—
Recovery of incident expense recorded to insurance receivable	—		4		4		425		24		449
Insurance recovery gain recorded in other non-operating income, net	—		—		—		—		80		80
Insurance proceeds received	(7)		(20)		(27)		(128)		(100)		(228)
Property damage insurance receivable as of the end of the period (b)	$	297	$	4	$	301	$	297	$	4	$	301

Total incident expense, net of property damage insurance recoveries	$	—	$	—	$	—	$	77	$	—	$	77

(a)Total estimated costs of ASAOC activities is expected to be approximately $110 million, of which $102 million was recorded in operating costs in the condensed consolidated statements of operations. Amounts above exclude $8 million of estimated demolition and battery removal costs reclassified from the Moss Landing 300 ARO to other current liabilities during the three months ended March 31, 2025.


	Three Months Ended September 30, 2025						Nine Months Ended September 30, 2025
	Moss Landing Incident		Martin Lake Incident		Total		Moss Landing Incident		Martin Lake Incident		Total
	(in millions)
Business interruption insurance proceeds received (a)	$	1	$	—	$	1	$	22	$	—	$	22

We expect to receive additional property damage and business interruption insurance proceeds related to the Martin Lake Incident and additional business interruption insurance proceeds related to the Moss Landing Incident which are not included in the property damage insurance receivable as of the period ended September 30, 2025. These additional proceeds will be recorded as income in the period they are realized.

Vistra Operations Commodity-Linked Revolving Credit Facility — In October 2025, Vistra Operations amended the Commodity-Linked Facility to, among other things, (i) extend the maturity date to September 30, 2026, and (ii) modify the calculation of the borrowing base. See Note 9 for additional information. In October 2025, Vistra Operations borrowed $100 million under the Commodity-Linked Facility.

Vistra Operations Senior Secured Notes — In October 2025, Vistra Operations issued $2.0 billion aggregate principal amount of senior secured notes, consisting of $750 million aggregate principal amount of 4.300% senior secured notes due 2028, $500 million aggregate principal amount of 4.600% senior secured notes due 2030, and $750 million principal amount of 5.250% senior secured notes due 2035 in an offering to eligible purchasers under Rule 144A and Regulation S under the Securities Act. See Note 9 for additional information.

Vistra Operations Senior Unsecured Notes — In October 2025, Vistra Operations used proceeds from the October 2025 issuance of Vistra Operations Senior Secured Notes discussed above to redeem the $1.0 billion outstanding principal amount of 5.500% Senior Unsecured Notes due 2026.