NRG Energy agreed to sell six natural gas power plants to LS Power for $4 billion in cash, the company said Monday. Its shares were up 10.7% at $97.75 by about 2:23 p.m. Eastern in trading still in progress.
The plants, including Ravenswood in New York and Ocean State Power in Rhode Island, total 4.9 gigawatts across the NYISO, ISO-NE and ERCOT power markets. The price equals 8.0 times expected 2027 adjusted earnings before interest, taxes, depreciation and amortization, on an enterprise value basis. The sale is expected to close in the second quarter of 2027, subject to closing conditions and regulatory approvals, including antitrust, federal energy and New York state reviews.
NRG plans $3 billion in share repurchases across 2026 and 2027, including an additional $1 billion expected to start before the end of the fourth quarter. It also plans to put $2 billion toward debt reduction after closing. The company will keep its PJM portfolio and CPower, and expects to own about 20 gigawatts of generation after the sale.
NRG separately reported third-quarter net income of $561 million, reaffirmed its 2026 guidance and issued its first guidance for 2027.
Investors will watch the regulatory reviews and the pace of the buyback.
