NRG Energy sells six gas plants to LS Power for $4 billion and lifts buybacks to $3 billion

NRG Energy (NYSE: NRG) said on Monday that it has signed a definitive agreement to sell six natural gas generation assets to LS Power for $4 billion in cash, according to its Form 8-K press release. The assets total 4.9 GW: Ravenswood in New York (NYISO), Ocean State Power and Wallingford in New England (ISO-NE), and Jack County, Johnson County and R.W. Miller in Texas (ERCOT). The company expects the sale to close in the second quarter of 2027, pending Hart-Scott-Rodino, FERC and New York Public Service Commission approvals. NRG shares traded at $96.06 at 10:27 AM ET, up $7.77 or 8.80% from Friday's $88.29 close, on Nasdaq.com.

What the price implies

NRG says the $4 billion price is an implied 8.0 times 2027 EV/Adjusted EBITDA. Working backward, that points to roughly $500 million of 2027 EBITDA from the six plants (our arithmetic, treating the $4 billion as enterprise value). Against the midpoint of NRG's own 2027 EBITDA guidance of $5.75 billion, that is about 9% of the company's earnings from the assets (our arithmetic), while the 4.9 GW is close to a fifth of its roughly 25 GW fleet. NRG will own 20 GW after closing, split evenly between ERCOT and PJM, per the release. The sale keeps all of its PJM assets and the CPower business it acquired in January.

Scale matters here: the $4 billion is about 20% of NRG's $20.2 billion market value, per Nasdaq.com (our arithmetic).

Where the money goes

• Buybacks: a pro forma plan of $3 billion in repurchases across 2026 and 2027, including an incremental $1 billion that NRG expects to begin before the end of the fourth quarter of 2026. Through October 31 it had already completed $977 million of its $1.0 billion 2026 program.
• Debt: an additional $2 billion of debt reduction after closing, which brings planned 2027 debt reduction to $3 billion, intended to hold its current leverage profile.
• Flexibility: the remaining $1 billion is reserved for contracted growth investments or more debt reduction.
• Dividend: a base 2027 plan raises the annual dividend 8% to $2.05 a share.

Repurchases and dividends remain subject to credit metrics and market conditions, the company's earnings release says.

The earnings that came with it

The same day NRG reported third-quarter GAAP net income of $561 million, up from $152 million a year earlier, and adjusted EPS of $4.68 against $2.78. Adjusted EBITDA was $2.013 billion versus $1.205 billion, with the East segment at $614 million versus $107 million, which NRG attributes mainly to the portfolio acquired from LS Power, higher realized capacity prices in the East and higher margins in Texas. The company reaffirmed 2026 adjusted EBITDA guidance of $5.325 billion to $5.825 billion and initiated 2027 guidance of $5.5 billion to $6.0 billion.

That 2027 guidance does not reflect the sale. NRG says it will update guidance and its capital plan after closing, so the earnings power left behind is not yet quantified in a filing. The East segment is also where the large year-over-year jump came from, and Ravenswood is in that region, though the release does not give figures for individual plants.

What to watch

The open questions are the approvals, especially the New York state review, and the 2027 guidance NRG promises after closing. NRG also says its 1.2 GW data center "Bring Your Own Power" project remains on track. The stock is still well below where it traded earlier this year: Nasdaq.com lists a 52-week range of $79.65 to $189.96, so $96 is about 49% under the high (our arithmetic).

Sources: NRG filings on SEC EDGAR (Form 8-Ks filed November 9, 2026); quote, market value and 52-week range from Nasdaq.com at 10:27 AM ET. Non-GAAP figures are the company's own. This is market information, not investment advice.