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Derivatives
 9 Months Ended
Sep. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives DERIVATIVES
We utilize derivative instruments, such as options, swaps, futures and forward contracts, to manage our exposure to commodity price and interest rate volatility. Counterparties to these transactions include energy companies, financial institutions, electric utilities, independent power producers, fuel oil and natural gas producers, local distribution companies, and energy marketing companies.

Commodity Derivatives

We utilize financial natural gas and financial and physical electricity derivatives to reduce exposure to changes in electricity prices primarily to hedge future revenues from electricity sales from our generation assets. Financial transmission rights and congestion revenue rights are derivative instruments we utilize to hedge electricity price differences between settlement points within regions. Gains and losses associated with these derivatives are reported in the condensed consolidated statements of operations in operating revenues.
We utilize physical natural gas, coal, emissions, and renewable energy certificate derivatives primarily to hedge future purchased power costs of our retail operations or fuel costs of our generation assets. Gains and losses associated with these derivatives are reported in the consolidated statements of operations in fuel, purchased power costs, and delivery fees.

Our Retail segment procures power from our generation segments to serve future load obligations. In locations and periods where our load service activities do not naturally offset existing generation portfolio risks, remaining commodity price exposure is managed through portfolio hedging activities.

Interest Rate Swaps

Interest rate swap agreements are used to reduce exposure to interest rate changes by converting floating-rate interest rates to fixed rates, thereby hedging future interest costs and related cash flows. Gains and losses associated with these derivatives are reported in the condensed consolidated statements of operations in interest expense and related charges.

As of September 30, 2025, Vistra has entered into the following interest rate swaps:
Notional AmountExpiration Date
Rate Range (d)
(in millions, except percentages)
Swapped to fixed (a)$3,000July 20262.89 %-2.97%
Swapped to variable (a)$700July 20261.44 %-1.49%
Swapped to fixed (b)$2,300December 20303.20 %-3.76%
Swapped to fixed (c)$416
March, July and October 2045
3.95 %-4.09%
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(a)The $700 million of pay variable rate and receive fixed rate swaps match the terms of a portion of the $3.0 billion pay fixed rate and receive variable rate swaps. These matched swaps will settle over time and effectively offset the hedged position. These offsetting swaps expiring in July 2026 hedge our exposure on $2.3 billion of variable rate debt through July 2026.
(b)Effective from July 2026 through December 2030. These swaps will hedge our exposure on $2.3 billion of floating rate debt from August 2026 through December 2030.
(c)In March 2025, May 2025 and July 2025, BCOP entered into interest rate swaps with notional amounts of approximately $108 million, $70 million and $238 million, respectively. These swaps are effective as of April 2025, October 2025 and October 2026, and will expire in March 2045, October 2045 and July 2045, respectively. These swaps are intended to hedge BCOP's exposure on approximately $416 million of floating rate Construction/Term Loan Facility commitments issued under the BCOP Credit Agreement. (see Note 9 for additional information).
(d)The rate ranges reflect the fixed leg of each swap at the applicable Term SOFR rate.

Effect of Derivative Instruments on the Condensed Consolidated Balance Sheets

We maintain standardized master netting agreements with certain counterparties that allow for the right to offset accounts payable, accounts receivable, and cash collateral paid in order to reduce credit exposure. The following tables reconcile our gross derivative assets and liabilities as reported in the condensed consolidated balance sheets to the net value on a contract basis, after taking into consideration netting arrangements with counterparties and cash collateral recorded.

September 30, 2025
Derivative Contract AssetsDerivative Contract Liabilities
Commodity ContractsInterest Rate SwapsCommodity ContractsInterest Rate SwapsTotal
(in millions)
Current assets$2,615 $18 $1 $— $2,634 
Noncurrent assets579 2 23 — 604 
Current liabilities— — (3,596)(14)(3,610)
Noncurrent liabilities(4)— (1,362)(22)(1,388)
Net assets (liabilities)$3,190 $20 $(4,934)$(36)$(1,760)
Offsetting instruments (a)(2,553)(12)2,553 12 — 
Financial collateral (received) pledged (b)(11)— 516 — 505 
Net amounts$626 $8 $(1,865)$(24)$(1,255)
December 31, 2024
Derivative Contract AssetsDerivative Contract Liabilities
Commodity ContractsInterest Rate SwapsCommodity ContractsInterest Rate SwapsTotal
(in millions)
Current assets$2,551 $34 $2 $— $2,587 
Noncurrent assets677 62 1 — 740 
Current liabilities— — (3,333)(18)(3,351)
Noncurrent liabilities(2)— (1,356)(9)(1,367)
Net assets (liabilities)$3,226 $96 $(4,686)$(27)$(1,391)
Offsetting instruments (a)(2,532)(28)2,532 28 — 
Financial collateral (received) pledged (b)(50)— 233 — 183 
Net amounts$644 $68 $(1,921)$1 $(1,208)
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(a)Amounts presented exclude trade accounts receivable and payable related to settled financial instruments.
(b)Represents cash amounts received or pledged pursuant to a master netting arrangement, including fair value-based margin requirements, and, to a lesser extent, initial margin requirements.

Effect of Derivative Instruments in the Condensed Consolidated Statements of Operations

The following table summarizes the location and amount of unrealized gains and losses from our derivative instruments recorded in the condensed consolidated statements of operations for the three and nine months ended September 30, 2025 and 2024:
Derivative (condensed consolidated statements of operations presentation)Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
(in millions)
Reversals of previously recognized unrealized (gain) loss on derivative instruments:
Commodity contracts unrealized (gain) loss in operating revenues (a)$735 $754 $878 $1,172 
Commodity contracts unrealized (gain) loss in fuel, purchased power costs, and delivery fees (a)11 23 3 178 
Interest rate swaps unrealized (gain) loss in interest expense and related charges(5)(11)(16)(33)
Total reversals of previously recognized unrealized (gain) loss on derivative instruments$741 $766 $865 $1,317 
Unrealized net gain (loss) from changes in fair value on derivative instruments:
Commodity contracts unrealized gain (loss) in operating revenues$(573)$1,206 $(1,179)$399 
Commodity contracts unrealized gain (loss) in fuel, purchased power costs, and delivery fees11 (128)(69)(24)
Interest rate swaps unrealized gain (loss) in interest expense and related charges(5)(73)(68)7 
Total unrealized net gain (loss) from change in fair value on derivative instruments$(567)$1,005 $(1,316)$382 
Net gain (loss) on derivative instruments$174 $1,771 $(451)$1,699 
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(a)Excludes the realized effects of changes in fair value in the month the position settled, amounts related to positions entered into and settled in the same month, and physical retail and wholesale contracts accounted for as derivatives that did not financially settle but were realized at the contract's notional and price. The realized effects of these items are included in operating revenues and fuel, purchased power costs, and delivery fees.
Derivative Volumes

The following table presents the gross notional amounts of derivative volumes by commodity, excluding our normal purchases and normal sales (NPNS) derivatives that are not recorded at fair value:
September 30, 2025December 31, 2024
Derivative typeNotional VolumeUnit of Measure
Natural gas4,017 4,568 Million MMBtu
Electricity881,426 796,982 GWh
Financial transmission rights / Congestion revenue rights254,680 248,742 GWh
Coal29 27 Million U.S. tons
Fuel oil3 2 Million gallons
Emissions33 28 Million U.S. tons
Renewable energy certificates29 31 Million certificates
Interest rate swaps – variable/fixed$5,716 $5,300 Million U.S. dollars
Interest rate swaps – fixed/variable$700 $700 Million U.S. dollars

Credit Risk-Related Contingent Features of Derivatives

Our derivative contracts may contain certain credit risk-related contingent features that could trigger liquidity requirements in the form of cash collateral, letters of credit or some other form of credit enhancement. Certain of these agreements may require the posting of additional collateral if our credit rating is downgraded by one or more credit rating agencies or include cross-default contractual provisions that could result in the settlement of such contracts if there was a failure under other financing arrangements related to payment terms or other covenants.

The following table presents the commodity derivative liabilities subject to credit risk-related contingent features that are not fully collateralized:
September 30, 2025December 31,
2024
(in millions)
Fair value of derivative contract liabilities (a)$(1,432)$(1,587)
Offsetting fair value under netting arrangements (b)597 724 
Cash collateral and letters of credit293 471 
Liquidity exposure$(542)$(392)
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(a)Excludes fair value of contracts that contain contingent features that do not provide specific amounts to be posted if features are triggered, including provisions that generally provide the right to request additional collateral (material adverse change, performance assurance and other clauses).
(b)Amounts include the offsetting fair value of in-the-money derivative contracts and net accounts receivable under master netting arrangements.
Concentrations of Credit Risk Related to Derivatives

We have concentrations of credit risk with the counterparties to our derivative contracts that increase the risk that a default by any of our counterparties could have a material effect on our financial condition, results of operations and liquidity. We maintain credit risk policies with regard to our counterparties to minimize overall credit risk. These policies authorize specific risk mitigation procedures including, but not limited to, (i) requiring counterparties to have investment grade credit ratings, (ii) use of standardized master agreements with our counterparties that allow for netting of positive and negative exposures, and (iii) credit enhancements (such as parent guarantees, letters of credit, surety bonds, liens on assets and margin deposits) that are required in the event of a material downgrade in their credit rating.
September 30, 2025
(in millions, except percentages)
Credit risk exposure to derivative contract counterparties:
Gross exposure$3,653 
Net exposure (a)$740 
Largest net exposure from any single counterparty (a)$302 
Percent of credit risk exposure to derivative contract counterparties related to banking and financial sector:
Gross exposure73 %
Net exposure (a)13 %
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(a)Exposure after taking into effect netting arrangements, setoff provisions, and collateral.