NRG agrees to a $4 billion plant deal with LS Power and lifts its buyback plan
NRG said the expected proceeds will support $3 billion in share repurchases across 2026 and 2027 and an additional $2 billion in debt reduction upon closing, bringing total planned 2027 debt reduction to $3 billion.
By Marcus Rodriguez ·
Why it matters: NRG is shrinking its generation map to fund buybacks and debt paydown while keeping 20 GW and a 1.2 GW data-center power project on track.
For information only, not investment advice. Prices delayed.
Tickers: NRG
NRG Energy ($NRG) is recycling generation assets into cash for shareholders. The company said it entered a definitive agreement to transfer six natural-gas plants totaling 4.9 GW to LS Power for a $4 billion cash purchase price, subject to closing adjustments, at an implied 2027 multiple of 8.0x EV/Adj. EBITDA.1
The plants sit in NYISO, ISO-NE and ERCOT. NRG said the deal is targeted to close in the second quarter of 2027, pending HSR, FERC and New York approvals, among other conditions, and that afterward it will still own and operate 20 GW, including 10 GW in ERCOT and 10 GW in PJM.1
The capital plan is the point of the trade. Expected proceeds are to support $3 billion of share repurchases across 2026 and 2027, including an incremental $1 billion expected to begin before year-end 2026, plus $2 billion of debt reduction at close that would bring planned 2027 debt reduction to $3 billion, NRG said.1
On the earnings side, third-quarter GAAP net income was $561 million, or $2.59 per basic share.2 NRG reaffirmed 2026 Adjusted EPS guidance of $7.90–$9.90 and Adjusted EBITDA of $5,325–$5,825 million, and said newly initiated 2027 guidance does not yet reflect the asset sale's expected impacts.2 Its previously announced 1.2 GW Bring Your Own Power data-center project remains on track, the company said.2
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Tags: earnings · mergers-acquisitions · energy · buybacks-dividends