NRG Energy to Acquire LS Power Assets for $12 Billion

Published 2 hours agoNRG

NRG Energy to Acquire LS Power Assets for $12 Billion

NRG Energy has announced a major deal involving the acquisition of power generation assets from LS Power valued at $12 billion. The deal will consist of $6.4 billion in cash, $2.8 billion in stock, and the assumption of $3.2 billion in net debt. This acquisition includes 18 natural gas-fired facilities with a total capacity of 13 gigawatts, along with a virtual power plant, effectively doubling NRG's generation capacity to 25 gigawatts, as reported by Reuters.

Financially, the acquisition is poised to close in the first quarter of 2026 and is expected to be immediately accretive to NRG's earnings per share (EPS). The company has raised its long-term EPS growth forecast from 10% to 14% and anticipates approximately $400 million in tax benefits from the deal. This development has already had a positive impact on NRG's stock, which saw a rise of more than 6% in premarket trading after the announcement.

NRG's strategic move comes in response to projected record-high electricity demand fueled by advances in artificial intelligence, the proliferation of cryptocurrency data centers, and increased electrification in heating and transportation. CEO Larry Coben has described the current era as the start of a "power demand supercycle." This acquisition aligns with NRG's broader vision to capitalize on these demand trends, reinforcing its position in the evolving energy landscape.

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