NRG Energy has agreed to sell six natural gas fired generation assets to LS Power for $4 billion in cash, the company announced on Monday in a press release filed with its Form 8-K. The price, subject to working capital and other closing adjustments, represents an implied valuation of 8.0 times the assets’ estimated 2027 adjusted EBITDA.
The six assets total 4.9 gigawatts across three power markets: Ravenswood in NYISO, Ocean State Power and Wallingford in ISO New England, and Jack County, Johnson County and R.W. Miller in ERCOT. The sale is targeted to close in the second quarter of 2027, subject to Hart-Scott-Rodino review and approvals from the Federal Energy Regulatory Commission and the New York State Public Service Commission. The definitive agreement’s Item 1.01 disclosure will follow in a subsequent amendment, NRG said.
The proceeds are spoken for before the deal closes. NRG said the sale supports its plan for $3 billion of share repurchases across 2026 and 2027, including an incremental $1 billion expected to begin before the end of the fourth quarter of 2026. On closing, NRG plans a further $2 billion of debt reduction to hold its current leverage profile, bringing total planned 2027 debt reduction to $3 billion, with any remaining proceeds reserved for contracted growth investments or additional debt reduction.
What stays is a two-market fleet. After the sale, NRG will own and operate 20 gigawatts of generation, 10 gigawatts in ERCOT and 10 gigawatts in PJM, with a further 1.1 gigawatts from its remaining two Texas Energy Fund projects expected by 2028. “We are unlocking substantial value from a select group of assets, while maintaining a robust generation footprint in PJM and ERCOT,” chief executive Robert Gaudette said. Barclays is lead financial adviser and White & Case is legal counsel to NRG. The company discusses the transaction on its earnings call at 8:00 a.m. Eastern today.