NRG Energy to Sell Six Natural Gas Plants to LS Power for $4 Billion
NRG Energy agreed to sell six natural gas generation assets to LS Power for $4 billion in cash, a deal the company said will fund more share repurchases and debt reduction, according to an 8-K filed Monday.
The purchase price, subject to working capital and other closing adjustments, represents an implied 2027 valuation multiple of 8.0 times enterprise value to adjusted EBITDA, based on NRG's estimate of the assets' 2027 adjusted EBITDA.
The six plants total 4.9 gigawatts across three power markets: Ravenswood in New York's NYISO, Ocean State Power and Wallingford in New England's ISO-NE, and Jack County, Johnson County and R.W. Miller in Texas' ERCOT.
Where the money goes
NRG said the proceeds will support a 2027 pro forma capital allocation plan of $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.
Once the sale closes, NRG plans an additional $2 billion of debt reduction to maintain its current leverage profile, bringing total planned 2027 debt reduction to $3 billion. The remaining proceeds will be reserved for contracted growth investments or more debt reduction, the company said.
"This transaction will strengthen our balance sheet, support increased share repurchases and preserve flexibility to invest in growth opportunities with compelling returns," Chief Executive Robert Gaudette said in the release.
What NRG keeps
After the sale, NRG will own and operate 20 gigawatts of generation, split evenly between 10 gigawatts in ERCOT and 10 gigawatts in PJM, the company said. It expects another 1.1 gigawatts to be operating in ERCOT by 2028 through its two remaining Texas Energy Fund projects.
The deal is targeted to close in the second quarter of 2027. It requires customary closing conditions and regulatory approvals, including Hart-Scott-Rodino clearance and approvals from the Federal Energy Regulatory Commission and the New York State Public Service Commission.
Barclays is lead financial adviser to NRG, and White & Case is its legal counsel. NRG said the definitive agreement will be filed in a separate 8-K.
By the numbers
- Sale price: $4 billion in cash
- Capacity sold: 4.9 gigawatts across six plants
- Implied multiple: 8.0 times 2027 EV/adjusted EBITDA
- Buybacks planned across 2026 and 2027: $3 billion
- Fleet after closing: 20 gigawatts
- Expected close: second quarter of 2027
Sources
- NRG Energy Form 8-K with Exhibit 99.1 press release, filed Nov. 9, 2026 (accession 0001104659-26-124147)
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