NRG Energy, Inc. agreed Monday to sell six natural gas-fired power plants with a combined 4.9 gigawatts of capacity to LS Power for $4 billion, pairing a major portfolio change with plans for shareholder returns and debt reduction.
Completion is targeted for the second quarter of 2027 and depends on required conditions, Federal Energy Regulatory Commission (FERC) and New York State Public Service Commission (NYSPSC) approvals, and Hart-Scott-Rodino (HSR) review. The $4 billion cash consideration may be adjusted at settlement for working capital and other items. NRG will retain its PJM portfolio and CPower, which it acquired from LS Power in January.
NRG plans $3 billion in share repurchases over 2026 and 2027, including an additional $1 billion program it expects to start by year-end 2026. After the sale closes, NRG plans an additional $2 billion in debt reduction, taking its planned 2027 total to $3 billion. It may direct the remaining $1 billion to contracted growth investments or further debt reduction. Its 2027 base plan includes $1 billion in debt reduction, $1 billion in repurchases and an 8% increase in the annual common dividend to $2.05 per share.
For the quarter ended Sept. 30, NRG reported net income of $561 million, compared with $152 million a year earlier. Revenue increased to $9.466 billion from $7.635 billion, and adjusted EBITDA, a non-GAAP measure, rose to $2.013 billion from $1.205 billion.
NRG said contributions from acquired LS Power assets, higher capacity prices in the East and stronger Texas margins helped lift results. Favorable weather contributed to Texas margins. Higher depreciation and interest costs tied to the acquired assets, as well as unrealized losses on economic hedges, offset some of the gains.
NRG left its 2026 guidance unchanged and projected 2027 adjusted EBITDA of $5.5 billion to $6 billion and adjusted earnings per share of $8.05 to $10.05. Those projections do not include the expected impact of the sale. After the sale closes, NRG says it will reassess its 2027 projections and capital allocation plan.
