Business Wire·Nov 9, 2026, 6:54 AM ET

NRG Energy Announces $4 Billion Asset Sale

NRG Energy announced a definitive agreement to sell six natural gas generation assets to LS Power for $4 billion in cash.
The sale implies an 8.0x EV/Adj. EBITDA valuation multiple based on 2027 estimates.
The six assets comprise 4.9 GW of generation capacity across NYISO, ISO-NE, & ERCOT markets.
Transaction closure is targeted for the second quarter of 2027, pending regulatory approvals from HSR, FERC, & NYSPSC.
Proceeds will fund $3 billion in share repurchases across 2026 & 2027, including an incremental $1 billion starting before Q4 2026.
NRG plans an additional $2 billion in debt reduction upon closing to maintain its leverage profile, bringing total 2027 debt reduction to $3 billion.
Remaining proceeds will be reserved for contracted growth investments or further debt reduction.
Post-closing, NRG will operate 20 GW of generation capacity nationwide, split evenly between 10 GW in ERCOT & 10 GW in PJM.
An additional 1.1 GW is expected to become operational in ERCOT by 2028 through remaining Texas Energy Fund projects.
Barclays served as lead financial advisor, while White & Case LLP acted as legal counsel for NRG.
The transaction will be discussed during NRG's earnings conference call on November 9 at 8:00 AM EST.