NRG Energy Stock Soars to Record High Amid Strong Earnings and Major Acquisition

Published 4 hours agoNRG

NRG Energy Stock Soars to Record High Amid Strong Earnings and Major Acquisition

NRG Energy's stock soared to a record high of $149.84, marking a 26% surge following the company's impressive earnings report and a noteworthy asset acquisition announcement. The stock market responded robustly to these positive developments, setting a new all-time high for the company.

In its latest earnings report, NRG Energy disclosed a GAAP Net Income of $643 million for Q4 2024 and an Adjusted EPS of $6.83, surpassing the top range of its raised guidance. Furthermore, NRG announced a $12 billion acquisition of power generation assets from LS Power. This strategic move involves $6.4 billion paid in cash, $2.8 billion in stocks, and the assumption of $3.2 billion in net debt. The acquisition includes 18 natural gas-fired facilities which effectively doubles the company's total generation capacity to 25 GW. Reuters reported that this expansion is pivotal for NRG as it looks to capitalize on expected increases in electricity demand.

With the acquisition in place, NRG is looking to strengthen its market position as the energy demand is projected to rise due to factors like AI, cryptocurrency data centers, and increased electrification. CEO Larry Coben described the current period as the start of a "power demand supercycle." This $12 billion deal is not only expected to immediately boost NRG's earnings per share but also increase the company's long-term EPS growth forecast from 10% to 14%, alongside approximately $400 million in anticipated tax benefits.

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