v3.26.1
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets and liabilities measured at fair value on a recurring basis consisted of the following at the respective balance sheet dates shown below:
June 30, 2026December 31, 2025
Level
1		Level
2		Level
3		Reclass
(a)		TotalLevel
1		Level
2		Level
3		Reclass
(a)		Total
(in millions)
Assets:
Commodity contracts$3,104 $474 $366 $50 $3,994 $2,162 $437 $573 $8 $3,180 
Interest rate swaps— 3 — — 3 — 17 — 1 18 
NDTs – equity securities (b)1,858 — — 1,858 1,761 — — 1,761 
NDTs – debt securities (c)164 2,245 — 2,409 117 1,971 — 2,088 
Sub-total$5,126 $2,722 $366 $50 8,264 $4,040 $2,425 $573 $9 7,047 
Assets measured at net asset value (d):
NDTs – equity securities (b)529 806 
NDTs - debt securities (c)357 329 
NDTs - other investments93 28 
Total assets$9,243 $8,210 
Liabilities:
Commodity contracts $4,077 $635 $1,589 $50 $6,351 $3,060 $846 $1,842 $8 $5,756 
Interest rate swaps — — — — — — 21 — 1 22 
Total liabilities$4,077 $635 $1,589 $50 $6,351 $3,060 $867 $1,842 $9 $5,778 
___________
(a)Fair values are determined at the individual contract level. As certain contracts give rise to both asset and liability positions, reclassification adjustments are required to reconcile these amounts to the gross presentation in the condensed consolidated balance sheets.
(b)The investment objective for NDT equity securities is to invest tax efficiently and to match the performance of the S&P 500 and Russell 3000 Indices for U.S. equity investments and the MSCI EAFE and MSCI All Country World ex-US Indices for non-U.S. equity investments.
(c)The investment objective for NDT debt securities is to invest in a diversified, high-quality, tax-efficient portfolio. The debt securities are weighted with government and investment-grade corporate bonds. Other investable debt securities include, but are not limited to, municipal bonds, high-yield bonds, securitized bonds, non-U.S. developed bonds, emerging market bonds, loans and treasury inflation-protected securities. The debt securities had an average coupon rate of 4.04% and 4.02% as of June 30, 2026 and December 31, 2025, respectively, and an average maturity of eight years as of each of June 30, 2026 and December 31, 2025, respectively. NDT debt securities held as of June 30, 2026 mature as follows: $958 million in one to five years, $1.225 billion in five to 10 years and $583 million after 10 years.
(d)Net asset value is a practical expedient used for the classification of assets that do not have readily determinable fair values and therefore are not classified in the fair value hierarchy.
Schedule of Fair Value of the Level 3 Assets and Liabilities by Major Contract Type and the Significant Unobservable Inputs Used in the Valuations
The following tables present the fair value of Level 3 assets and liabilities by major contract type and the significant unobservable inputs used in the valuations as of June 30, 2026 and December 31, 2025:
June 30, 2026
Fair Value
Contract Type (a)AssetsLiabilitiesTotal, NetValuation TechniqueSignificant Unobservable InputRange (b)Average (b)
(in millions)
Electricity purchases and sales$132 $(1,411)$(1,279)Income ApproachHourly price curve shape (c)$—to$90$45
MWh
Illiquid delivery periods for hub power prices (d)$30to$145$88
MWh
Market Heat Rates (d)$35to$90$63
MWh
Options5 (131)(126)Option Pricing ModelNatural gas to power correlation (e)15%to100%58%
Power and natural gas volatility (e)5%to1,120%563%
Financial transmission rights/Congestion revenue rights196 (28)168 Market Approach (f)Illiquid price differences between settlement points (g)$(45)to$20$(12.5)
MWh
Natural gas25 (19)6 Income ApproachNatural gas basis (h)$(2)to$16$7
MMBtu
Illiquid delivery periods (i)$3to$5$4
MMBtu
Other (j)8 — 8 
Total$366 $(1,589)$(1,223)
December 31, 2025
Fair Value
Contract Type (a)AssetsLiabilitiesTotal,
Net		Valuation TechniqueSignificant Unobservable InputRange (b)Average (b)
(in millions)
Electricity purchases and sales$269 $(1,607)$(1,338)Income ApproachHourly price curve shape (c)$—to$95$48
MWh
Illiquid delivery periods for hub power prices (d)$25to$135$80
MWh
Market Heat Rates (d)$25to$130$78
MWh
Options— (177)(177)Option Pricing ModelNatural gas to power correlation (e)15%to100%58%
Power and natural gas volatility (e)5%to1,120%563%
Financial transmission rights/Congestion revenue rights277 (34)243 Market Approach (f)Illiquid price differences between settlement points (g)$(12)to$25$7
MWh
Natural gas16 (24)(8)Income ApproachNatural gas basis (h)$(2)to$14$6
MMBtu
Illiquid delivery periods (i)$3to$5$4
MMBtu
Other (j)11 — 11 
Total$573 $(1,842)$(1,269)
____________
(a)(i) Electricity purchase and sales contracts include power and Heat Rate positions in ERCOT, PJM, ISO-NE, NYISO, MISO, and CAISO regions, (ii) Options consist of physical electricity options, spread options, and natural gas options, (iii) Forward purchase contracts (swaps and options) used to hedge electricity price differences between settlement points are referred to as CRRs in ERCOT and FTRs in PJM, ISO-NE, NYISO, and MISO regions, and (iv) Natural gas contracts include swaps and forward contracts.
(b)The range of the inputs may be influenced by factors such as time of day, delivery period, season, and location. The average represents the arithmetic average of the underlying inputs and is not weighted by the related fair value or notional amount.
(c)Primarily based on the historical range of forward average hourly ERCOT North Hub and ERCOT South and West Zone prices.
(d)Primarily based on historical forward ERCOT and PJM power prices and ERCOT Heat Rate variability.
(e)Primarily based on the historical forward correlation and volatility within ERCOT and PJM.
(f)While we use the market approach, there is insufficient market data for the inputs to the valuation to consider the valuation liquid.
(g)Primarily based on the historical price differences between settlement points within ERCOT hubs and load zones.
(h)Primarily based on the historical forward PJM and Northeast natural gas basis prices and fixed prices.
(i)Primarily based on the historical forward natural gas fixed prices.
(j)Other includes contracts for coal and environmental allowances.
Schedule of Changes in Fair Value of the Level 3 Assets and Liabilities
The following table presents the changes in fair value of Level 3 assets and liabilities:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(in millions)
Net liability balance at beginning of period$(924)$(944)$(1,269)$(752)
Total unrealized valuation gains (losses)(201)99 (1)(144)
Purchases, issuances and settlements (a):
Purchases57 83 105 132 
Issuances(13)(4)(20)(6)
Settlements(62)(84)30 (91)
Transfers into Level 3 (b)(55)(6)(54)(5)
Transfers out of Level 3 (c)(25)(28)(14)(18)
Net change(299)60 46 (132)
Net liability balance at end of period$(1,223)$(884)$(1,223)$(884)
Unrealized valuation losses relating to instruments held at end of period$(241)$(27)$(120)$(286)
____________
(a)Settlements reflect reversals of unrealized mark-to-market valuations previously recognized in net income. Purchases and issuances reflect option premiums paid or received, including CRRs and FTRs.
(b)Transfers into Level 3 include instruments for which significant valuation inputs became unobservable due to changes in market conditions. All transfers into Level 3 during the periods presented were from Level 2. For the three and six months ended June 30, 2026, transfers into Level 3 primarily consisted of power derivatives for which forward pricing inputs became unobservable. For the three and six months ended June 30, 2025, transfers into Level 3 primarily consist of power and natural gas derivatives where forward pricing inputs become unobservable.
(c)Transfers out of Level 3 include instruments for which previously unobservable valuation inputs became observable. All transfers out of Level 3 during the periods presented were to Level 2. For the three and six months ended June 30, 2026, transfers out of Level 3 primarily consisted of power derivatives for which forward pricing inputs became observable. For the three months ended June 30, 2025, transfers out of Level 3 primarily consist of power and natural gas derivatives where forward pricing inputs become observable. For the six months ended June 30, 2025, transfers out of Level 3 primarily consisted of power, natural gas, and coal derivatives for which forward pricing inputs became observable.
Schedule of Fair Value of Debt
June 30, 2026December 31, 2025
Instrument:Fair Value HierarchyCarrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
(in millions)
Long-term debt under the Vistra Operations Credit FacilitiesLevel 2$— $— $2,417 $2,459 
BCOP Credit FacilityLevel 3752 764 859 872 
Vistra Zero Term Loan B FacilityLevel 2687 694 687 688 
TxEF LoanLevel 3171 172 — — 
Vistra Operations Senior NotesLevel 217,518 17,704 12,620 12,955 
Energy Harbor Revenue BondsLevel 2417 434 416 433 
Equipment Financing AgreementsLevel 350 50 45 45 
Forward Repurchase ObligationLevel 3613 613 632 632